The purpose of this paper is twofold. First, we show that pollution abatement subsidies, defined as subsidies on the inputs to pollution abatement, are inefficient instruments for pollution control. Whereas these types of subsidies are used in practice, the existing literature analyses only...

The literature on trade liberalization and environment has not considered federal structures. This paper shows how the design of environmental policy in a federal system has implications for the effects of trade reform. Trade liberalization leads to a decline in pollution taxes regardless of...

The literature on trade liberalization and environment has not considered federal structures. This paper shows how the design of environmental policy in a federal system has implications for the effects of trade reform. Trade liberalization leads to a decline in pollution taxes regardless of...