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Author:Fernandez, L.
Title:Trade's Dynamic Solutions to Transboundary Pollution
Journal:Journal of Environmental Economics and Management
2002 : MAY, VOL. 43:3, p. 386-411
Index terms:TRADE
POLLUTION
WATER POLLUTION
TRADE BARRIERS
Language:eng
Abstract:This study develops a differential game to examine the effects of trade liberalization on transboundary water pollution. Water pollution is due to wastewater emissions from countries in a shared waterway along the U.S.- Mexico border with available data of pollution abatement costs, public health damages, and trade benefits. Noncoopcrative and cooperative games are examined with changes in trade policy and public health damages. Results show trade liberalization leads Mexico to curtail pollution in both games. Cooperation and trade liberalization limit emissions from both countries and curtail strategic behavior of the United States from Mexico's pollution control efforts in the noncooperative game.
SCIMA record nr: 236744
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