The increase in global trade has contributed to the integration of domestic economies worldwide into a single global economy. Despite the welfare benefits from global trade, concerns remain regarding the impact of trade on the environment, particularly on global environmental threats like...

Pigovian regulation provides monetary penalties/rewards to incentivize prosocial behavior, and may thereby trigger behavioral effects beyond a more standard response associated with a change in relative prices. This paper quantifies the magnitude of these behavioral effects using data from an...