This digital document is a journal article from Ecological Economics, published by Elsevier in 2006. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.Description: One of many explanations for Environmental Kuznets Curves for rich countries can be that dirty production is relocated to economies with laxer abatement regimes. If this is caused by national abatement policies, environmental stresses are transferred to other countries. Further, the economic costs of national abatement policies can be shared with foreigners to some extent, both through a lower demand for imports and losses of market shares for foreign competitors that produce cleaner products. We quantify effects internally and abroad of a growth-induced unilateral carbon tax policy in a rich open economy. We find that the environmental benefits fall, and the economic costs rise, when a global rather than a national perspective is employed.