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On Efficiency of Decentralized Environmental Regulation

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  • Mitch Kunce

    ()

  • Jason Shogren

    ()

Abstract

Contrary to conventional wisdom about an environmental race to the bottom, the theoretical literature as exemplified by Oates and Schwab [1988, Journal of Public Economics, 35:333–354] maintains that homogeneous jurisdictions’ decentralized choices are likely to be socially optimal because each locale sets capital tax rates to zero and sets optimal environmental standards. This paper shows the well-received Oates–Schwab-style efficiency result is not likely if allowed aggregate-emissions act as a firm-augmenting public input that benefits mobile firms. Copyright Springer Science+Business Media, Inc. 2005

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File URL: http://hdl.handle.net/10.1007/s11149-005-3105-9
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Bibliographic Info

Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 28 (2005)
Issue (Month): 2 (09)
Pages: 129-140

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Handle: RePEc:kap:regeco:v:28:y:2005:i:2:p:129-140

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Web page: http://www.springerlink.com/link.asp?id=100298

Related research

Keywords: interjurisdictional competition; fiscal federalism; environmental federalism; H71; H73;

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Cited by:
  1. Bert Saveyn, 2013. "On NIMBY and commuting," International Tax and Public Finance, Springer, vol. 20(2), pages 293-311, April.
  2. Vickerman, Roger, 2008. "Provision of public transport under conflicting regulatory regimes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(9), pages 1176-1182, November.
  3. Saveyn Bert, 2006. "Are NIMBY's commuters?," Energy, Transport and Environment Working Papers Series ete0604, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.

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