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Environmental Degradation As an Incentive For Trade *
Author(s) -
Leger Lawrence A.
Publication year - 1995
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/j.1467-9396.1995.tb00073.x
Subject(s) - incentive , economics , environmental degradation , international trade , international economics , microeconomics , economic geography , natural resource economics , ecology , biology
A modified Heckscher‐Ohlin‐Samuelson model is used in which industries are allocated by historical accident to geographical regions and agents care about their environment. Incentives for international trade arise when economies with identical factor endowments and geophysical characteristics differ in the allocation of industries to regions, and economies will tend to export goods produced in regions with higher environmental assimilative capacity.