Concerns have been expressed that in a global market place with mobile capital, national governments will have incentives to set weak environmental policies (“environmental dumpingâ€) to protect the international competitiveness of their domestic firms, that these incentives are...

A number of countries have recently introduced legislation which holds polluters liable for the costs of cleaning up environmental damage they have caused. While in principle this gives polluters appropriate incentives to reduce the risk of environmental damage, these incentives are weakened if...