Green growth is one of the main goals of EU countries and governments. Some of the policy measures to achieve this objective can boost firm reallocations between countries. Economic geography literature studies these migrations, and natural and environmental resources play a fundamental role in shaping the distribution of population and economic activity. 

The proposed line of research aims to contribute to the literature in at least one of the following specific directions:

• First, we will analyze how industrial pollution, whether local or transboundary, and environmental policy determine the geographic distribution of economic activity across different countries or regions. Specifically, we will examine the hypothesis of pollution havens, the policies that favor them, and how they can be prevented. The goal is also to study the impact—both in the short and long term—on the productivity of firms that remain in local and foreign markets. That is, to study Porter’s hypothesis. An ambitious environmental policy, initially designed to improve social welfare, increases production costs, and less productive firms will exit the market, leading to a loss of welfare. In this framework of heterogeneous firms, we will study the effect that environmental policy has on welfare and the environment.
   
• Secondly, we will incorporate the strategic behavior of countries in designing environmental policies that maximize social welfare. Governments know that their policies have an effect on international trade and the global environment, so they should take into account the actions of their counterparts. By using Game theory, we will address some of the current challenges.

Research Area: Economic Sciences (ECO) 

Applicants* must send a free-format CV., official doctoral transcripts, a maximum of three publications and two letters of recommendation directly to Prof. Maria Pilar Martinez-Garcia via email at pilarmg@um.es

*Please note that applicants must comply with the eligibilty criterias of the MSCA PF 2025 call (must have a PhD degree at the time of the deadline for applications; must have a maximum of 8 years experience in research and should comply with MSCA PF Mobility Rule, available in the “2.3.2. Recruited researchers” section of the Work Programme MSCA 2023-2025)