We study environmental policy in a two nation world in which there is strategic behavior by governments and polluting firms. Two issues are analyzed. First, the conditions under which the conduct of unilateral environmental policy by a nation in a Bertrand game will immiserize that nation, are...

In this paper we study some of the consequences of national environmental policy in a strategic international setting. Two broad questions are analyzed. First, we examine the circumstances under which the pursuit of environmental policy by a country in a Cournot game will make that country worse...