Governments support particular firms or sectors by granting low interest financing, reduced regulation, tax relief, price supports, monopoly rights, and a variety of other subsidies. Previous work in partial equilibrium shows that subsidies to environmentally sensitive industries increases...

Countries that wish to erect trade barriers have a variety of instruments at their disposal. In addition to tariffs and quotas, countries can offer tax relief, low interest financing, reduced regulation, and other subsidies to domestic industries facing foreign competition. In a trade agreement,...

Several recent papers propose competing theoretical explanations for the empirical observation of an inverted U-shape relationship between enviromental degradation and per-capita income. We proprose the following test of the theory: calibrate a theoretical model to an already developed economy...