A Model of Competing Jurisdictions with Locally Polluting Environments and Mobile Populations
AbstractIn this model we consider a federation consisting oftwo geographically separated Regional states withlocal taxing authority. The residents of thefederation are identical in preferences and haveexplicit tolerance to pollution. Pollution is local innature and is a by-product of production implying amore highly populated region would generate morepollution. Local authorities in the regions can andwill (in the interest of local residents) engage ingame theoretical taxation strategies. The model isused to illustrate that Nash Equilibrium can resultwherein the two regions have different levels ofenvironmental quality. The resulting Nash conditionsimply for instance that residents of the ``cleanregion'' will subsidize those in the other region tostay in the more polluted environment (in order foreach to accomplish their preferred consumption andenvironmental quality pair). Copyright Kluwer Academic Publishers 2001
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 18 (2001)
Issue (Month): 2 (February)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100263
efficiency; environment; federation; interregional transfers; pollution;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Boadway, Robin, 1982. "On the Method of Taxation and the Provision of Local Public Goods: Comment," American Economic Review, American Economic Association, vol. 72(4), pages 846-51, September.
- David E. Wildasin, 2005. "Fiscal Competition," Working Papers 2005-05, University of Kentucky, Institute for Federalism and Intergovernmental Relations.
- Bucovetsky, Sam & Wilson, John Douglas, 1991. "Tax competition with two tax instruments," Regional Science and Urban Economics, Elsevier, vol. 21(3), pages 333-350, November.
- Dietmar Wellisch, 1995. "Can household mobility solve basic environmental problems?," International Tax and Public Finance, Springer, vol. 2(2), pages 245-260, August.
- Mansoorian, Arman & Myers, Gordon M., 1993. "Attachment to home and efficient purchases of population in a fiscal externality economy," Journal of Public Economics, Elsevier, vol. 52(1), pages 117-132, August.
- Oates, Wallace E. & Schwab, Robert M., 1988. "Economic competition among jurisdictions: efficiency enhancing or distortion inducing?," Journal of Public Economics, Elsevier, vol. 35(3), pages 333-354, April.
- Zagonari, Fabio, 1998. "International Pollution Problems: Unilateral Initiatives by Environmental Groups in One Country," Journal of Environmental Economics and Management, Elsevier, vol. 36(1), pages 46-69, July.
- Mansoorian, Arman & Myers, Gordon M., 1996.
"Private sector versus public sector externalities,"
Regional Science and Urban Economics,
Elsevier, vol. 26(5), pages 543-555, August.
- Wellisch, Dietmar, 1994. "Interregional spillovers in the presence of perfect and imperfect household mobility," Journal of Public Economics, Elsevier, vol. 55(2), pages 167-184, October.
- Myers & G.M., 1989.
"Optimality, Free Mobility And The Regional Authority In Federation,"
10, John Deutsch Institute for the Study of Economic Policy.
- Myers, Gordon M., 1990. "Optimality, free mobility, and the regional authority in a federation," Journal of Public Economics, Elsevier, vol. 43(1), pages 107-121, October.
- Flatters, Frank & Henderson, Vernon & Mieszkowski, Peter, 1974. "Public goods, efficiency, and regional fiscal equalization," Journal of Public Economics, Elsevier, vol. 3(2), pages 99-112, May.
- van 't Veld, Klaas & Shogren, Jason F., 2012. "Environmental federalism and environmental liability," Journal of Environmental Economics and Management, Elsevier, vol. 63(1), pages 105-119.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.