Management for a Variety of Environmental Pollution and North-South Trade
A simple static model incorporating a variety of environmental pollution is developed. An autarky model shows that a developing country regulates fewer types of pollution by income-induced environmental policy. As income grows, the types of regulated pollution increase and also introduced regulations become tougher.Then the model incorporates international trade between a developed country and a developing country. The model gives a new interpretation for the pollution haven hypothesis. Some types of pollution abated with inefficient technology are emitted more in a developing country but other types necessarily increase in a developed country in order to meet the trade balance.
|Date of creation:||Mar 2005|
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|Publication status:||Published in IDE Discussion Paper. No. 23. 2005.3|
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- Brian R. Copeland & M. Scott Taylor, 2001.
"International Trade and the Environment: A Framework for Analysis,"
NBER Working Papers
8540, National Bureau of Economic Research, Inc.
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Elsevier, vol. 41(2), pages 162-178, March.
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