IDEAS home Printed from https://ideas.repec.org/p/fth/lavaen/98-06.html
   My bibliography  Save this paper

Fiscal Competition and Polluting Firm' Location Under Incomplete Information

Author

Listed:
  • Tanguay, G.A.
  • Marceau, N.

Abstract

The main result of this paper is that when two asymmetric regions compete in pollution taxes to attract a polluting firm, optimal location will happen under complete information but not necessarily under incomplete information. It is shown that incomplete information on regions' pollution costs may lead to a bias towards location in a region that does not maximize net total benefits. This bias is more likely to occur if a region believes that the other region has a ``high'' marginal cost of pollution. Also, this bias tends to disappear with large discrepancies in production costs.

Suggested Citation

  • Tanguay, G.A. & Marceau, N., 1998. "Fiscal Competition and Polluting Firm' Location Under Incomplete Information," Papers 98-06, Laval - Recherche en Energie.
    • Handle: RePEc:fth:lavaen:98-06
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    FISCAL POLICY ; COMPETITION ; LOCATION ; POLLUTION;
    All these keywords.

    JEL classification:

    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fth:lavaen:98-06. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thomas Krichel (email available below). General contact details of provider: https://edirc.repec.org/data/grlvlca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.