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Population Mobility and Transboundary Environmental Problems

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Author Info
Hoel, Michael
Shapiro, Perry

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Abstract

A standard result in the literature on environmental economics is that efficient environmental policies regulating transboundary pollution will be adopted only if there is interjurisdictional coordination. Efficient policies can be adopted as a result of interregional treaties or mandated by a central authority. The present paper demonstrates that if there is perfect population mobility between the regions affected by the transboundary pollution, the efficient outcome is a Nash equilibrium of the policy game between regional authorities. This is true independently of what policies are available to the regional authorities. However, there may be more than one Nash equilibrium, so that policy coordination may be necessary in order to achieve the best equilibrium.

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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 488.

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Date of creation: 2001
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Handle: RePEc:ces:ceswps:_488

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Related research
Keywords: Transboundary pollution; population mobility; federalism;

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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. Markusen, James R, 1975. "Cooperative Control of International Pollution and Common Property Resources," The Quarterly Journal of Economics, MIT Press, vol. 89(4), pages 618-32, November. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
  3. Myers, Gordon M. & Papageorgiou, Yorgos Y., 1997. "Efficient Nash equilibria in a federal economy with migration costs," Regional Science and Urban Economics, Elsevier, vol. 27(4-5), pages 345-371, August. [Downloadable!] (restricted)
  4. Monderer, Dov & Shapley, Lloyd S., 1996. "Potential Games," Games and Economic Behavior, Elsevier, vol. 14(1), pages 124-143, May. [Downloadable!] (restricted)
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Cited by:
(explanations, 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. Chris Elbers & Cees Withagen, 2004. "Environmental Policy, Population Dynamics and Agglomeration," Contributions to Economic Analysis & Policy, Berkeley Electronic Press, vol. 3(2), pages 1286-1286. [Downloadable!] (restricted)
  2. Andreas Lange & Martin Quaas, 2007. "Economic Geography and the Effect of Environmental Pollution on Agglomeration," Topics in Economic Analysis & Policy, Berkeley Electronic Press, vol. 7(1), pages 1724-1724. [Downloadable!] (restricted)
  3. Dijkstra, B.R. & Vries, F.P. de, 2004. "Location choice by households and polluting firms : an evolutionary approach," Discussion Paper 61, Tilburg University, Center for Economic Research. [Downloadable!]
  4. Michael Hoel & Perry Shapiro, 2004. "Transboundary Environmental Problems with Mobile but Heterogeneous Populations," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 27(3), pages 265-272, March. [Downloadable!] (restricted)
  5. Michael Hoel, 2002. "no title provided," University of California at Santa Barbara, Economics Working Paper Series 5-02, Department of Economics, UC Santa Barbara. [Downloadable!]
  6. Martin Daniel Siyaranamual, 2009. "Constructing the Model of Environmental Migration," Working Papers in Economics and Development Studies (WoPEDS) 200901, Department of Economics, Padjadjaran University, revised Mar 2009. [Downloadable!]
  7. Hadjiyiannis, Costas & Hatzipanayotou, Panos & Michael, Michael S., 2002. "Optimal Tax Policies with Private-Public Clean-Up, Cross-Border Pollution and Capital Mobility," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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