The author examines the welfare effects of a transfer of pollution abatement technology in a two-country model. In each country, one industry discharges pollution as a byproduct of output, and the sum of domestic and cross-border pollution decreases the productivity of the other industry.
Geography
Link
http://econpapers.repec.org/scripts/redir.pl?u=http%3A%2F%2Fhdl.handle.net%2F10.1007%2Fs00712-005-0134-x;h=repec:kap:jeczfn:v:85:y:2005:i:3:p:251-275