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Environmental Policy and Firm Localisation

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Author Info
Francesco Prota

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Abstract

The delocation of firms is often viewed as a major outcome of rigorous environmental policy. In this paper, we study the impact of a strict anti-pollution policy pursued by a government on domestic firms locational decisions and determine the main variables that interact with such a policy. Some preliminary implications for welfare are also considered. Section 2 presents the model, while Section 3 derives Cournot-Nash equilibria in the two market and. Section 4 goes on to consider the issue of the optimal location choice made by firms in response to the environmental policy enforced by the government. In section 5 we analyse the alternative strategies a government can adopt and the possible effects on welfare,while the final section summarizes the results.

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File URL: http://www.francoangeli.it/riviste/Scheda_Riviste.asp?IDArticolo=23313&Tipo=ArticoloPDF
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Publisher Info
Article provided by Associazione Rossi Doria in its journal QA.

Volume (Year): (2004)
Issue (Month): 3 (July)
Pages:
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Handle: RePEc:rar:journl:0103

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Related research
Keywords: Politica ambientale; Localizzazione produttiva; Concorrenza imperfetta;

Find related papers by JEL classification:
H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
R30 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - General
D40 - Microeconomics - - Market Structure and Pricing - - - General

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This page was last updated on 2009-12-13.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.