Dynamic environmental policy in developing countries with a dual economy
AbstractWe analyze a dynamic model of environmental policy in a stylized developing country (DC) with a dual economy. This DCâs economy is distorted because the government subsidizes the exports of the non-polluting sector of the economy. We analyze the employment and output effects of three different pollution taxes. These taxes incorporate alternate assumptions about the DC governmentâs ability to commit to its announced course of action. We describe the taxes, we examine the dependence of these taxes on the extant distortion, and we stipulate the conditions that call for an activist policy, irrespective of the length of time to which the government can commit to its announced policy. Inter alia, our analysis shows why some DC governments may not be serious about environmental protection.
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Bibliographic InfoArticle provided by Elsevier in its journal International Review of Economics & Finance.
Volume (Year): 11 (2002)
Issue (Month): 2 (May)
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Web page: http://www.elsevier.com/locate/inca/620165
Other versions of this item:
- D. Lee & A. Batabyal, . "Dynamic environmental policy in developing countries with a dual economy," Working Papers 2000-29, Utah State University, Department of Economics.
- O20 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - General
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
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