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Spatial Dimensions of Environmental Policies for Trans-Boundary Externalities - A Spatial Price Equilibrium Approach

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  • Erik T. Verhoef

    ()
    (Vrije Universiteit Amsterdam)

  • Peter Nijkamp

    ()
    (Vrije Universiteit Amsterdam)

Abstract

This paper presents a framework for analysing spatial aspects of environmental policies in the regulation of trans-boundary externalities. A spatial price equilibrium model for two regions is constructed, where interactions between these regions can occur via trade and transport, via mutual environmental spill-overs due to the externality that arises from production, and via tax competition when the regions do not behave cooperatively. Explicit attention is also given to the additional complications arising from emissions caused by the endogenous transport flows.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 98-079/3.

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Date of creation: 30 Jul 1998
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Handle: RePEc:dgr:uvatin:19980079

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Web page: http://www.tinbergen.nl

Related research

Keywords: environmental regulation; trans-boundary externalities; spatial policy analysis;

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References

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  1. Rauscher, Michael, 1994. "On Ecological Dumping," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 822-40, Supplemen.
  2. E T Verhoef & J C J M van den Bergh & K J Button, 1997. "Transport, spatial economy, and the global environment," Environment and Planning A, Pion Ltd, London, vol. 29(7), pages 1195-1213, July.
  3. Fredriksson, Per G., 1997. "The Political Economy of Pollution Taxes in a Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 33(1), pages 44-58, May.
  4. Ulph, Alistair, 1996. "Environmental Policy and International Trade when Governments and Producers Act Strategically," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 265-281, May.
  5. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 33(1), pages 132-163, March.
  6. Conrad Klaus, 1993. "Taxes and Subsidies for Pollution-Intensive Industries as Trade Policy," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 121-135, September.
  7. Kennedy Peter W., 1994. "Equilibrium Pollution Taxes in Open Economies with Imperfect Competition," Journal of Environmental Economics and Management, Elsevier, vol. 27(1), pages 49-63, July.
  8. James R. Markusen & Edward R. Morey & Nancy Olewiler, 1991. "Environmental Policy When Market Structure and Plant Locations are Endo-genous," NBER Working Papers 3671, National Bureau of Economic Research, Inc.
  9. Markusen, James R, 1975. "Cooperative Control of International Pollution and Common Property Resources," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 89(4), pages 618-32, November.
  10. Krutilla, Kerry, 1989. "Tariff burdens and optimal tariffs under alternative transport cost and market structures," Economics Letters, Elsevier, Elsevier, vol. 31(4), pages 381-386, December.
  11. Erik Verhoef & Peter Nijkamp, 1997. "The Adoption of Energy Efficiency Enhancing Technologies," Tinbergen Institute Discussion Papers, Tinbergen Institute 97-077/3, Tinbergen Institute.
  12. Krutilla, Kerry, 1991. "Environmental regulation in an open economy," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 127-142, March.
  13. Alistair fnUlph, 1996. "Environmental policy instruments and imperfectly competitive international trade," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 7(4), pages 333-355, June.
  14. Markusen, James R., 1975. "International externalities and optimal tax structures," Journal of International Economics, Elsevier, Elsevier, vol. 5(1), pages 15-29, February.
  15. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
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Cited by:
  1. Verhoef, Erik T. & Nijkamp, Peter, 2002. "Externalities in urban sustainability: Environmental versus localization-type agglomeration externalities in a general spatial equilibrium model of a single-sector monocentric industrial city," Ecological Economics, Elsevier, Elsevier, vol. 40(2), pages 157-179, February.
  2. Erik T. Verhoef & Peter Nijkamp, 2000. "Externalities in Urban Sustainability," Tinbergen Institute Discussion Papers, Tinbergen Institute 00-077/3, Tinbergen Institute.

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