Forslid, Rikard; Okubo, Toshihiro; Sanctuary, Mark - Nationalekonomiska institutionen, Stockholms Universitet - 2013
This paper uses a monopolistic competitive framework with many sectors to study the impact of trade liberalization on … a large-market advantage can counterbalance a high emission tax, implying that trade liberalization leads to lower … global emissions. Generally, our results suggest that relative market size, the level of trade costs, the ease of abatement …