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Efficiency of Non-cooperative Emission Taxes in Perfectly Competitive Markets

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  • Roland Magnusson

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    (Department of Political and Economic Studies, University of Helsinki)

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    Abstract

    With the current efforts to regulate the emissions of greenhouse gases and other cross border pollutants, the question of environmental federalism is as important as ever. By generalising the model presented by Oates and Schwab (1987, 1988), we show that the well established result within environmental federalism, that the government of a small country has no incentive to depart from the cooperative choice of environmental standards, does not hold for pollutants that have regional or global characteristics, as e.g. sulphur dioxide and carbon dioxide has.

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    File URL: http://www.taloustieteellinenyhdistys.fi/images/stories/fep/fep22010/fep22010magnusson.pdf
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    Bibliographic Info

    Article provided by Finnish Economic Association in its journal Finnish Economic Papers.

    Volume (Year): 23 (2010)
    Issue (Month): 2 (Autumn)
    Pages: 88-93

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    Handle: RePEc:fep:journl:v:23:y:2010:i:2:p:88-93

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    1. Markusen, James R. & Morey, Edward R. & Olewiler, Nancy, 1995. "Competition in regional environmental policies when plant locations are endogenous," Journal of Public Economics, Elsevier, vol. 56(1), pages 55-77, January.
    2. Greaker, Mads, 2003. "Strategic environmental policy when the governments are threatened by relocation," Resource and Energy Economics, Elsevier, vol. 25(2), pages 141-154, May.
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