Pollution, trade liberalization, and urban unemployment

Shang-Fen Wu and Cheng-Te Lee

Asia-Pacific Journal of Accounting & Economics, 2025, vol. 32, issue 1, 134-144

Abstract: We set up a theoretical model to analyze the effects of environmental policy and trade policy on pollution and unemployment. We find that the level of global pollution would fall due to a rise in the environment tax and prove that if the external effect dominates the direct effect then a rise in the environment tax would lead to a reduction in the unemployment rate, and vice versa. In addition, we claim that if the external effect dominates the trade effect then the trade liberalization policy will lead to a reduction in the unemployment rate, and vice versa.

Date: 2025
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DOI: 10.1080/16081625.2023.2228808

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Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

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