ABSTRACT
Widespread publicity of international conflict over transfrontier pollutants, such as acid deposition and the November 1986 chemical spill in the Rhine River, has increased the public’s awareness of the need to devise abatement strategies appropriate for transnational pollution. This chapter develops a general equilibrium approach for analyzing the economic impacts of selected abatement strategies. The model includes internationally mobile goods, capital and pollution flows, and flexible output and factor prices. The general equilibrium approach provides policymakers with important information that is usually not revealed by a partial equilibrium approach. That is demonstrated by applying the model to the North American acid deposition issue.
© 1988 Academic Press, Inc.