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Smulders, S. and Gradus, R. (1996) Pollution Abatement and Long-Term Growth. European Journal of Political Economy, 12, 505-532. http://dx.doi.org/10.1016/S0176-2680(96)00013-4

has been cited by the following article:

• TITLE: Optimal Environmental Policy under Endogenous Terms of Trade and Economic Growth

  AUTHORS: Alejandro Sampaolesi

  KEYWORDS: Growth, Trade, Environment, Political Economy

  JOURNAL NAME: Theoretical Economics Letters, Vol.4 No.7, August 14, 2014

  ABSTRACT: The aim of this work is to depict the main characteristics of the optimal environmental policy under endogenous terms of trade and economic growth. Here, endogenous terms of trade are inferred from the price of an aggregate consumption good. Our results show that when emissions of a global pollutant affect the environment and, therefore, the utility of the economic agents, the optimal policy consists in a pollution tax on production.