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On the Political Economy of Environmental Policy

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  • Gebhard Kirchgässner
  • Friedrich Schneider

Abstract

In the past there was hardly any use of economic instruments in environmental policy, mainly command and control measures were used. More recently, ecological taxes as well as tradable permits became more popular and voluntary agreements have been imple-mented. Using the Public Choice ap-proach we ask for the reasons of this wider acceptance of economic instru-ments. We conclude that the use of market based instru-ments in environmental policy has not in-creased very much and their impact on the actual situation is still rather low, but there is hope of at least some increase in the future.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2002/wp-cesifo-2002-06/741.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 741.

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Date of creation: 2002
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Handle: RePEc:ces:ceswps:_741

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Related research

Keywords: environmental policy; ecological taxes; tradable permits; voluntary agreements; voting behaviour; public bureaucracy; interest groups;

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References

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  1. Hibbs, Douglas Jr., 1992. "Partisan theory after fifteen years," European Journal of Political Economy, Elsevier, vol. 8(3), pages 361-373, October.
  2. Frey, Bruno S & Schneider, Friedrich, 1978. "A Politico-Economic Model of the United Kingdom," Economic Journal, Royal Economic Society, vol. 88(350), pages 243-53, June.
  3. Frey, Bruno S & Schneider, Friedrich, 1978. "An Empirical Study of Politico-Economic Interaction in the United States," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 174-83, May.
  4. Gebhard Kirchgässner & Ulrich Müller & Marcel Savioz, 1998. "Ecological Tax Reform and Involuntary Unemployment: Simulation Results for Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 134(III), pages 329-353, September.
  5. Dewees, Donald N, 1983. "Instrument Choice in Environmental Policy," Economic Inquiry, Western Economic Association International, vol. 21(1), pages 53-71, January.
  6. Bovenberg, A.L. & Mooij, R.A. de, 1994. "Environmental levies and distortionary taxation," Open Access publications from Tilburg University urn:nbn:nl:ui:12-152985, Tilburg University.
  7. B Hansj�rgens, 1998. "The sulfur dioxide allowance-trading program in the USA: recent developments and lessons to be learned," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 16(3), pages 341-361, June.
  8. Paul Ekins & Stefan Speck, 1999. "Competitiveness and Exemptions From Environmental Taxes in Europe," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 13(4), pages 369-396, June.
  9. Joskow, Paul L & Schmalensee, Richard, 1998. "The Political Economy of Market-Based Environmental Policy: The U.S. Acid Rain Program," Journal of Law and Economics, University of Chicago Press, vol. 41(1), pages 37-83, April.
  10. Kirchgassner, Gebhard & Kubler, Knut, 1992. "Symmetric or asymmetric price adjustments in the oil market : An empirical analysis of the relations between international and domestic prices in the Federal Republic of Germany, 1972-1989," Energy Economics, Elsevier, vol. 14(3), pages 171-185, July.
  11. Joskow, Paul L & Schmalensee, Richard & Bailey, Elizabeth M, 1998. "The Market for Sulfur Dioxide Emissions," American Economic Review, American Economic Association, vol. 88(4), pages 669-85, September.
  12. Haucap, Justus & Kirstein, Roland, 2001. "Government Incentives when Pollution Permits are Durable Goods," CSLE Discussion Paper Series 2001-06, Saarland University, CSLE - Center for the Study of Law and Economics.
  13. Kirchgassner, Gebhard & Pommerehne, Werner W, 1993. " Low-Cost Decisions as a Challenge to Public Choice," Public Choice, Springer, vol. 77(1), pages 107-15, September.
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Citations

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Cited by:
  1. Lars P. Feld & Gebhard Kirchgässner, 2003. "Die Rolle des Staates in privaten Governance Strukturen," University of St. Gallen Department of Economics working paper series 2003 2003-11, Department of Economics, University of St. Gallen.
  2. Andrea Kollmann & Friedrich Schneider, 2010. "Why does Environmental Policy in Representative Democracies Tend to be Inadequate? A Preliminary Public Choice Analysis," CESifo Working Paper Series 3223, CESifo Group Munich.
  3. Jonas Dovern & Ulrich Fritsche, 2008. "Estimating fundamental cross-section dispersion from fixed event forecasts," Macroeconomics and Finance Series 200801, Hamburg University, Department Wirtschaft und Politik.
  4. Martin Halla & Friedrich Schneider & Alexander Wagner, 2013. "Satisfaction with democracy and collective action problems: the case of the environment," Public Choice, Springer, vol. 155(1), pages 109-137, April.
  5. Böcher, Michael, 2012. "A theoretical framework for explaining the choice of instruments in environmental policy," Forest Policy and Economics, Elsevier, vol. 16(C), pages 14-22.
  6. Drosdowski, Thomas, 2006. "On the Link Between Democracy and Environment," Hannover Economic Papers (HEP) dp-355, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  7. Leo Wangler & Juan-Carlos Altamirano-Cabrera & Hans-Peter Weikard, 2013. "The political economy of international environmental agreements: a survey," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 13(3), pages 387-403, September.
  8. Kirchgässner, Gebhard, 2014. "Zu neueren Entwicklungen bei der Einbeziehung privater Akteure in Prozesse der öffentlichen Verwaltung: Einige Bemerkungen," Economics Working Paper Series 1413, University of St. Gallen, School of Economics and Political Science.
  9. Leo Wangler, 2012. "The political economy of the green technology sector: A study about institutions, diffusion and efficiency," European Journal of Law and Economics, Springer, vol. 33(1), pages 51-81, February.
  10. Peter Gossum & Bas Arts & Kris Verheyen, 2010. "From “smart regulation” to “regulatory arrangements”," Policy Sciences, Springer, vol. 43(3), pages 245-261, September.
  11. Sven Rudolph & Friedrich Schneider, 2011. "Did the Japanese Patient Follow the Doctor's Orders? Mostly no! A Public Choice Analysis of Greenhouse Gas Emissions Trading Schemes in Japan before and after the Earthquake," CESifo Working Paper Series 3639, CESifo Group Munich.
  12. Frank Wätzold, 2009. "Explaining differences in EMAS participation rates across Europe: the importance of institutions, incomplete information and path dependence," European Journal of Law and Economics, Springer, vol. 28(1), pages 67-82, August.
  13. Alfred Endres, 2008. "Ein Unmöglichkeitstheorem für die Klimapolitik?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 9(3), pages 350-382, 08.
  14. Drosdowski, Thomas, 2005. "Democracy Deficits, Inequality and Pollution. A Politico-Economic Analysis," Hannover Economic Papers (HEP) dp-323, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  15. Anger, Niels & Böhringer, Christoph & Oberndorfer, Ulrich, 2008. "Public Interest vs. Interest Groups: Allowance Allocation in the EU Emissions Trading Scheme," ZEW Discussion Papers 08-023, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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