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Does trade liberalization increase global pollution?

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  • Beladi, Hamid
  • Oladi, Reza

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.

Suggested Citation

  • Beladi, Hamid & Oladi, Reza, 2011. "Does trade liberalization increase global pollution?," Resource and Energy Economics, Elsevier, vol. 33(1), pages 172-178, January.
    • Handle: RePEc:eee:resene:v:33:y:2011:i:1:p:172-178
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Yiping Sun & Xiangyi Li & Tengyuan Zhang & Jiawei Fu, 2022. "Does Trade Policy Uncertainty Exacerbate Environmental Pollution?—Evidence from Chinese Cities," IJERPH, MDPI, vol. 19(4), pages 1-21, February.
    2. Liming Hong & Wei Huang & Sajid Anwar & Xiaofeng Lv, 2023. "North–South asymmetry, unilateral environmental policy and carbon tariffs," Pacific Economic Review, Wiley Blackwell, vol. 28(2), pages 241-266, May.
    3. Hamid Beladi & Lu Liu & Reza Oladi, 2011. "A Holistic View of Trade, Pollution Permits and Abatement," Working Papers 0002, College of Business, University of Texas at San Antonio.
    4. Jing Tian & Hua Liao & Ce Wang, 2015. "Spatial–temporal variations of embodied carbon emission in global trade flows: 41 economies and 35 sectors," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 78(2), pages 1125-1144, September.
    5. Seyed Nezamuddin Makiyan & Mahsa Saeedi, Mehdi Nejati, 2022. "Trade Liberalization and Environmental Pollution in Iran," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 9(2), pages 557-573, July.
    6. Fozia Latif Gill & K Kuperan Viswanathan & Mohd Zaini Abdul Karim, 2018. "The Critical Review of the Pollution Haven Hypothesis (PHH)," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 167-174.
    7. Caplan, Arthur J. & Oladi, Reza, 2018. "Green competition, hybrid equilibrium, and establishment of a resale market," International Review of Economics & Finance, Elsevier, vol. 58(C), pages 259-269.
    8. Wan, Rui & Nakada, Minoru & Takarada, Yasuhiro, 2018. "Trade liberalization in environmental goods," Resource and Energy Economics, Elsevier, vol. 51(C), pages 44-66.
    9. Kolcava, Dennis & Nguyen, Quynh & Bernauer, Thomas, 2019. "Does trade liberalization lead to environmental burden shifting in the global economy?," Ecological Economics, Elsevier, vol. 163(C), pages 98-112.
    10. Oladi, Reza & Caplan, Arthur J. & Gilbert, John, 2018. "Sequestration and the engagement of developing economies in a global carbon market," Resource and Energy Economics, Elsevier, vol. 52(C), pages 50-63.
    11. Takauchi, Kazuhiro & Mizuno, Tomomichi, 2019. "Solving a hold-up problem may harm all firms: Downstream R&D and transport-price contracts," International Review of Economics & Finance, Elsevier, vol. 59(C), pages 29-49.
    12. Michaël Aklin, 2016. "Re-exploring the Trade and Environment Nexus Through the Diffusion of Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 663-682, August.
    13. Erdogan, Ayse M., 2014. "Bilateral trade and the environment: A general equilibrium model based on new trade theory," International Review of Economics & Finance, Elsevier, vol. 34(C), pages 52-71.

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