This paper develops a dynamic model wherein production generates pollution that is viewed as a public bad by consumers. There are two types of consumers : those who are altuist a la Barro-Becker and leave bequests to their children and those who are pure life-cyclers. Both types of consumers...

It is shown that when some countries take unilateral steps towards solving environmental problems, efficiency in the global economy will be enhanced by implementing trade provisions along with domestic environmental regulations.