Kreickemeier, Udo; Richter, Philipp M. - In: Review of International Economics 22 (2014) 2, pp. 209-225
In this paper, we derive a new effect of trade liberalization on the quality of the environment. We show that in the presence of heterogeneous firms, the aggregate volume of emissions is influenced by a reallocation effect resulting from an increase in the relative size of more productive firms....
