摘要: This paper presents a framework for analysing spatial aspects of environmentalpolicies in the regulation trans-boundary externalities. A priceequilibrium model two regions is constructed, where interactions betweenthese can occur via trade and transport, mutual environmentalspill-overs due to externality that arises from production, taxcompetition when do not behave cooperatively. Also additionalcomplications arising emissions caused by endogenous transport flowsare considered explicitly.