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AA00260492-20200000-0043.pdf
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Title |
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Factor price equalization and transboundary pollution revisited
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柳瀬, 明彦
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ヤナセ, アキヒコ
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Romanization |
Yanase, Akihiko
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Affiliation |
名古屋大学大学院経済学研究科
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Affiliation (Translated) |
Graduate School of Economics, Nagoya University
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Keio Economic Society, Keio University
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Issued (from:yyyy) |
2019
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Keio economic studies
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55
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2019
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43
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53
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Abstract |
This paper re-examines the effect of international trade on industrial pollution in a North-South trade model developed by Copeland and Taylor (1994, Quarterly Journal of Economics 109, pp. 755–787; 1995, American Economics Review 85, pp. 716–737), by extending the model to a case in which the pollution is neither necessarily local nor global. It is demonstrated that trade decreases pollution in the humancapital-abundant North and increases pollution in the human-capital-scarce South, irrespective of the degree of pollution spillover. It is also shown that the total pollution level in the world increases by opening trade, except for a case in which pollution is purely global.
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factor price equalization
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