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The Environment, Trade and Innovation with Heterogeneous Firms: A Numerical Analysis

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  • Cui, Jingbo
  • Ji, Yongjie

Abstract

We employ a two-sector heterogeneous firms model in the presence of endogenous innovation and environmental constraints. We perform simple numerical simulations concerning the implication of a stringent environmental policy and trade cost differences between dirty and clean inputs. Our objective is to highlight the effects of these policy proposals on the process innovation, trade pattern, and productivity dynamics.

Suggested Citation

  • Cui, Jingbo & Ji, Yongjie, 2011. "The Environment, Trade and Innovation with Heterogeneous Firms: A Numerical Analysis," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103478, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103478
    DOI: 10.22004/ag.econ.103478
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    References listed on IDEAS

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    3. Jingbo Cui, 2017. "Induced clean technology adoption and international trade with heterogeneous firms," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(8), pages 924-954, November.
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    5. Andrew B. Bernard & Stephen J. Redding & Peter K. Schott, 2007. "Comparative Advantage and Heterogeneous Firms," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(1), pages 31-66.
    6. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    7. Mikhail Golosov & John Hassler & Per Krusell & Aleh Tsyvinski, 2014. "Optimal Taxes on Fossil Fuel in General Equilibrium," Econometrica, Econometric Society, vol. 82(1), pages 41-88, January.
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