| This paper studies the interaction between the performance of firms and unions and the environmental policy chosen by governments when there is a negative environmental externality from production of a good which only affects the country where the firm is located. I assume that governments choose an upper limit on emissions, unions choose the wage rates and firms choose the employment level. Specifically, I analyze the effect that unionized labor markets have on environmental policy. Resumen: En este artículo estudiamos el efecto del comportamiento de empresas y trabajadores sobre la política medioambiental, cuando existe contaminación local. Suponemos que el gobierno elige la política medioambiental, basada en un límite sobre las emisiones, mientras que... |
