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Transboundary Environmental Problems with Mobile but Heterogeneous Populations

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Author Info
Michael Hoel ()
Perry Shapiro ()
Abstract

Most of the literature on transboundaryenvironmental problems treats population ineach country or region as constant, ignoringpopulation mobility. We showed previously thatif there is perfect population mobility betweenregions, and populations are homogeneous, asocially efficient outcome can be supported asa Nash equilibrium of the game of uncoordinatedpolicy setting, even without any internationalenvironmental agreement. In the present paperwe introduce heterogeneous population, and showthat when people differ, a non-cooperativeoutcome is generally inefficient. We alsodemonstrate that for a particular set ofobjective functions for the regionalgovernments, there is an equilibrium of thegame of uncoordinated policy setting that isefficient. Finally, we give an example wherethe decentralized outcome is efficient whenthere is no population mobility, butinefficient when there is population mobility. Copyright Kluwer Academic Publishers 2004

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File URL: http://hdl.handle.net/10.1023/B:EARE.0000017663.80803.a4
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Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 27 (2004)
Issue (Month): 3 (March)
Pages: 265-272
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Handle: RePEc:kap:enreec:v:27:y:2004:i:3:p:265-272

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Web page: http://www.springerlink.com/link.asp?id=100263

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Keywords: federalism; population mobility; transboundary pollution;

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References listed on IDEAS
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.:
  1. Perry Shapiro, . ""Transboundary Environmental Problems with a Mobile Population: Is There a Need for Central Policy?," University of California at Santa Barbara, Economics Working Paper Series 5-00, Department of Economics, UC Santa Barbara. [Downloadable!]
  2. Silva, Emilson C. D., 1997. "Decentralized and Efficient Control of Transboundary Pollution in Federal Systems," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 95-108, January. [Downloadable!] (restricted)
  3. Dietmar Wellisch, 1995. "Can household mobility solve basic environmental problems?," International Tax and Public Finance, Springer, vol. 2(2), pages 245-260, August. [Downloadable!] (restricted)
  4. Hoel,M. & Shapiro,P., 2000. "Transboundary environmental problems with a mobile population : is there a need for central policy," Memorandum 16/2000, Oslo University, Department of Economics. [Downloadable!]
  5. 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. [Downloadable!] (restricted)
  6. Hoel, Michael & Shapiro, Perry, 2003. "Population mobility and transboundary environmental problems," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 1013-1024, May. [Downloadable!] (restricted)
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  7. 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. [Downloadable!] (restricted)
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  1. Aoyama Naoto & Emilson Silva, 2008. "Correlated Pollutants, Interregional Redistribution and Labor Attachment in a Federation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 41(1), pages 111-131, September. [Downloadable!] (restricted)
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