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A Dynamic Model of Effects of Effects of Trade and Environmental Policies on Firms' Offshoring and Clean Technology Adoption Decisions

Listed author(s):
  • Meng, Xianwei
  • Wei, Xuan
Registered author(s):

    This paper develops a dynamic general equilibrium model to analyze the effects of changes in trade and environmental policies on firms' production location choices and clean technology adoptions to reduce emission. During this process, the equilibrium worker's wages and environmental quality of related countries are determined. In addition, this model is applied to the trade and production relocation issues between the United States and China over 1999-2013 to quantify the pollution haven effects and the total production offshoring directly and indirectly from the U.S. to China. Further, the long-run predictions on offshoring and emission levels in both countries and counterfactual policy analysis are discussed in this paper.

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    File URL: http://purl.umn.edu/236064
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    Paper provided by Agricultural and Applied Economics Association in its series 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts with number 236064.

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    Date of creation: 2016
    Handle: RePEc:ags:aaea16:236064
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