International trade and the environment: a framework for analysis

International trade and the environment: a framework for analysis

Economic tools useful to an examination of the trade and environment debate

This paper sets out a general equilibrium pollution and trade model to provide a framework for examination of the trade and environment debate. The model contains as special cases a canonical pollution haven model as well as the standard Heckscher-Ohlin-Samuelson factor endowments model. It draws quite heavily from trade theory, but develops a simple pollution demand and supply system featuring marginal abatement cost and marginal damage schedules familiar to environmental economists. [Authors]

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