Effects of transboundary pollution on the mode of international trade of a polluting good
This paper looks into potential determinants of the mode of international competition in a polluting good market by analyzing a strategic interaction between two environmentally concerned governments. From the equilibrium outcomes of our game based on an international duopoly model with transboundary pollution, we show how a resulting form of international competition can be influenced by, among other things, the magnitudes of the marginal damage cost and transboundary impact of pollution and also the degree of similarity between the two nations in these aspects.
|Date of creation:||Apr 2007|
|Date of revision:||Apr 2007|
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- Markusen, James R., 1981. "Trade and the gains from trade with imperfect competition," Journal of International Economics, Elsevier, vol. 11(4), pages 531-551, November.
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