Population mobility and transboundary environmental problems
AbstractA standard result in the literature on environmental economics is that efficient environmental policies regulating transboundary pollution will be adopted only if there is interjurisdictional coordination. Efficient policies can be adopted as a result of interregional treaties or mandated by a central authority. The present paper demonstrates that if there is perfect population mobility between the regions affected by the transboundary pollution, the efficient outcome is a Nash equilibrium of the policy game between regional authorities. This is true independently of what policies are available to the regional authorities. However, there may be more than one Nash equilibrium, so that policy coordination may be necessary in order to achieve the best equilibrium.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 87 (2003)
Issue (Month): 5-6 (May)
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Web page: http://www.elsevier.com/locate/inca/505578
Other versions of this item:
- Michael Hoel & Perry Shapiro, 2001. "Population Mobility and Transboundary Environmental Problems," CESifo Working Paper Series 488, CESifo Group Munich.
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