Forslid, Rikard; Okubo, Toshihiro; Ulltveit-Moe, Karen … - Nationalekonomiska institutionen, Stockholms Universitet - 2015
This paper develops a theoretical model of trade and environmental emissions with heterogeneous firms, where firms make …, reduces emissions per output. We find that trade liberalization weeds out the least productive and dirtiest firms thereby … effect of trade is therefore to reduce emissions. We test the empirical implications of the model on emission intensity …