Global environmental standards with heterogeneous polluters
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文摘
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We propose a simple model featuring intra-industry trade, heterogeneous firms, and consumption-generated pollution.

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Firms discovering dirtier products make more profits and export with weak consumer preferences for environmental quality.

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Firms discovering cleaner products make more profits and export with strong consumer preferences for environmental quality.

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A more stringent global environmental standard has an ambiguous effect on global pollution and welfare.

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