Development policies, transfer of pollution abatement technology and trans-boundary pollution

In this paper, we integrate intra-region labor migration and inter-region labor migration into Harris-Todaro model in the presence of unidirectional trans-boundary pollution. We conduct a simple comparative static analysis of regional economic and environmental effects of the central government's development policies on two regions, reducing the transfer cost of inter-region labor migration and increasing the capital subsidy to the less developed region. In addition, we compare the environmental and regional economic effects of the transfer of pollution abatement technology in two regions.

► We introduce intra-region and inter-region labor migration to Harris-Todaro model. ► Unidirectional trans-boundary pollution is also considered in our model. ► Economic and environmental effects of different development policies are analyzed. ► Impacts of the pollution abatement technology improvement are compared.