Comparative Advantage, Trade, and Transboundary Pollution

Carol Scotese Lehr and John W. Maxwell ()

Open Economies Review, 2000, vol. 11, issue 3, pages 205-227

Abstract: It is common for studies on trade and environment issues to model trade patterns as driven by environmental considerations. Under conditions of trade liberalization, these studies predict the rise of pollution havens and an increase in global pollution. The extant empirical literature, however, gives only mixed support at best for the notion that trade patterns are influenced by environmental issues. We develop a simple model to investigate whether trade based on traditional comparative advantage may lead to increased global pollution. We find that trade may lead to increased global pollution if both trading nations exhibit increasing marginal disutilities of pollution. Copyright Kluwer Academic Publishers 2000

Keywords: transboundary pollution; international trade; comparative advantage (search for similar items in EconPapers)
Date: 2000
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