The Environment and Trade

Reflecting the emphasis of recent work in the field of trade and the environment, this review focuses on empirical issues, primarily econometric estimates of the pollution haven effect and simulation-based calculations of carbon leakage. A brief discussion of the theory explains why intuition from partial equilibrium models may not carry over to a general equilibrium setting. 397 A nn u. R ev . R es ou r. E co n. 2 01 1. 3: 39 741 7. D ow nl oa de d fr om w w w .a nn ua lr ev ie w s. or g by U ni ve rs ity o f C al if or ni a B er ke le y on 0 5/ 08 /1 2. F or p er so na l u se o nl y.