Does trade liberalization increase global pollution? |
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| Authors: | Hamid Beladi Reza Oladi |
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| Institution: | 1. Department of Economics, University of Texas at San Antonio, 6900 North Loop 1604 West, One UTSA Circle, San Antonio, TX 78249-0633, United States;2. Department of Applied Economics, Utah State University, United States |
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| Abstract: | In this paper we consider a simple duopoly market in which a home firm and a foreign firm use labor to produce an identical product and supply it to the home market. Firms emit pollution as a by-product of production. We show conditions under which international trade liberalization decreases (increases) the global pollution. |
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