We study how the shadow economy affects pollution and how this effect depends on corruption levels in public administration. Production in the shadow economy allows firms to avoid environmental regulation policies; a large informal sector may be accompanied by higher pollution levels. Our...

Prolonged worldwide economic depression forces some economists and policy makers to demand for a tougher regulation to protect their domestic economy. If implemented, this may lead to a high tariff and non-tariff regime that ruled the pre-globalised world economy. This paper examines the...