Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/18943 
Year of Publication: 
2005
Series/Report no.: 
CESifo Working Paper No. 1479
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We construct a two-good general equilibrium model of international trade for two small open economies where pollution from production is transmitted across borders. Governments in both countries impose emission taxes non-cooperatively. Within this framework, we examine the effect of trade liberalization and of changes in the perception of cross-border pollution on Nash emission taxes, emission levels, and welfare.
Subjects: 
cross-border pollution
emission taxes
terms of trade
globalization
welfare
JEL: 
H23
Q28
Document Type: 
Working Paper
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