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Environmental Standards, Wage Incomes and the Location of Polluting Firms (I)

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Author Info
Juan Carlos Barcena-Ruiz () (Departamento de Fundamentos del Analisis Economico, Universidad del Pais Vasco, Spain)
M. Begona Garzon () (Departamento de Fundamentos del Analisis Economico, Universidad del Pais Vasco, Spain)
Abstract

The purpose of this paper is to study how the choice of environmental standards by governments is affected by the existence of wage incomes when firms' location is endogenous. In developed countries labor is unionized, which allows positive wage incomes to arise. Thus, each government has incentives to persuade firms to locate in its country since its social welfare depends on such incomes. But, as pollution damages the environment, each government will try to persuade polluting firms to locate in its country to obtain the wage incomes only when its valuation of environmental damage shows that it is low.

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Paper provided by Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística) in its series BILTOKI with number 200004.

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Date of creation: 23 Mar 2000
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Handle: RePEc:ehu:biltok:200004

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Postal: Dpto. de Econometría y Estadística, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain
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Related research
Keywords: Environmental Standards; Firms' Location; Wage Incomes.;

Find related papers by JEL classification:
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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  7. Markusen James R. & Morey Edward R. & Olewiler Nancy D., 1993. "Environmental Policy when Market Structure and Plant Locations Are Endogenous," Journal of Environmental Economics and Management, Elsevier, vol. 24(1), pages 69-86, January. [Downloadable!] (restricted)
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  8. Ulph, A. & Valentini, L., 1997. "Plant location and strategic environmental policy with inter-sectoral linkages," Resource and Energy Economics, Elsevier, vol. 19(4), pages 363-383, November. [Downloadable!] (restricted)
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  13. Falk Ita & Mendelsohn Robert, 1993. "The Economics of Controlling Stock Pollutants: An Efficient Strategy for Greenhouse Gases," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 76-88, July. [Downloadable!] (restricted)
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    Other versions:
  16. Hettige, Hemamala & Lucas, Robert E B & Wheeler, David, 1992. "The Toxic Intensity of Industrial Production: Global Patterns, Trends, and Trade Policy," American Economic Review, American Economic Association, vol. 82(2), pages 478-81, May. [Downloadable!] (restricted)
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