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Transboundary Environmental Problems with Mobile but Heterogeneous Populations

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  • 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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Bibliographic Info

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;

References

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  1. 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.
  2. Hoel, Michael & Shapiro, Perry, 2003. "Population mobility and transboundary environmental problems," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 1013-1024, May.
  3. Wellisch,Dietmar, 2000. "Theory of Public Finance in a Federal State," Cambridge Books, Cambridge University Press, number 9780521630351.
  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.
  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.
  6. Dietmar Wellisch, 1995. "Can household mobility solve basic environmental problems?," International Tax and Public Finance, Springer, vol. 2(2), pages 245-260, August.
  7. 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.
  8. repec:fth:calaec:5-00 is not listed on IDEAS
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Citations

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Cited by:
  1. Hoel, Michael, 2004. "Interregional interactions and population mobility," Journal of Economic Behavior & Organization, Elsevier, vol. 55(3), pages 419-433, November.
  2. 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.
  3. Naoto Aoyama & 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(3), pages 437-437, November.
  4. Francis Bloch & Unal Zenginobuz, 2012. "Oates' Decentralization Theorem with Household Mobility," Working Papers hal-00657823, HAL.
  5. Hoel, Michael, 2002. "no title provided," University of California at Santa Barbara, Economics Working Paper Series qt5cb1x2jm, Department of Economics, UC Santa Barbara.

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