International Trade and the Environment: A Framework for Analysis

71 Pages Posted: 11 Oct 2001 Last revised: 3 Nov 2022

See all articles by Brian R. Copeland

Brian R. Copeland

University of British Columbia

M. Scott Taylor

University of Calgary - Department of Economics

Date Written: October 2001

Abstract

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. We draw quite heavily from trade theory, but develop a simple pollution demand and supply system featuring marginal abatement cost and marginal damage schedules familiar to environmental economists. We have intentionally kept the model simple to facilitate extensions examining the environmental consequences of growth, the impact of trade liberalization, and strategic interaction between countries.

Suggested Citation

Copeland, Brian and Taylor, Michael Scott, International Trade and the Environment: A Framework for Analysis (October 2001). NBER Working Paper No. w8540, Available at SSRN: https://ssrn.com/abstract=286965

Brian Copeland (Contact Author)

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Michael Scott Taylor

University of Calgary - Department of Economics ( email )

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