<p>The paper attempts to explore the existence of a trade-off between policies like tax to control pollution and transfer of environmentally sound technology (EST) in a trade-theoretic general equilibrium framework and tries to rank these two policies on the basis of their impact on pollution level and involuntary unemployment. In the first part this has been done in terms of a four-sector sector-specific model with rigid wage. The first part shows that transfer of EST is a better option from the point of view of reducing unemployment and checking pollution provided the technique effect dominates over the scale effect. However, in case of increase in tax for controlling pollution we find a trade-off exists between reduction in pollution and increase in unemployment. In the second part the model has been extended by incorporating a Heckscher-Ohlin nugget in an otherwise sector-specific model to capture finite changes and it has been shown that the tax to control pollution gives much better and definite results of zero pollution and significantly lower level of unemployment rate than the case of transfer of EST.</p>