Conference Homepage Trade's Dynamic Solutions to Transboundary Pollution presented by Linda Fernandez Asst. This study develops and applies a two-country differential game model to examine the effects of trade liberalization on transboundary water pollution.
Water pollution is due to wastewater emissions from both countries in a shared border waterway.
The model is applied to the U.S.-Mexico border with available data of pollution control costs, public health damages and trade revenues from the Rio Grande waterway. Results show trade liberalization does offer Mexico incentive to curtail pollution in both games.