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Pollution Abatement and International Self-Sufficiency

Robert Kohn and Paul Chambers
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Robert Kohn: Southern Illinois University
Paul Chambers: Central Missouri State University

Eastern Economic Journal, 2000, vol. 26, issue 2, 213-219

Abstract: Dorfman (1973) anticipates increases in international trade when pollution abatement reduces damage to polluted industries. We simulate the effect of abatement with a Heckscher-Ohlin-Samuelson model of a production on production externality. Both countries are Pigouvian and two levels of abatement effectiveness are endogenized. Although more effective pollution abatement increases total world production of both goods, trade decreases as a proportion of total world production. Our results with possibly greater pollution abatement by larger countries are useful in explaining Rose's (1991) findings that post-1973 increases in real output for large countries are associated with declines in international trade.

Keywords: International TRade; Trade (search for similar items in EconPapers)
JEL-codes: F18 (search for similar items in EconPapers)
Date: 2000
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Eastern Economic Journal is currently edited by Cynthia A. Bansak, St. Lawrence University and Allan A. Zebedee, Clarkson University

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