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Yu-Bong Lai
''Trade liberalization, consumption externalities and the environment''
( 2004, Vol. 17 No.5 )
It has conventionally been argued that trade liberalization will degrade the environment of a country that imports a good whose consumption gives rise to pollution. By contrast, this note demonstrates that, if the linkage between the trade and the environmental policies has been taken into consideration, then liberalizing trade in a good that generates consumption-type negative externalities will actually improve the environment of the importing country.
Keywords: consumption externalities
JEL: Q2 - Renewable Resources and Conservation: General
F1 - Trade: General
Manuscript Received : Oct 06 2004 Manuscript Accepted : Oct 06 2004

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