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A Reconsideration of Environmental Federalism

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Author Info
Oates, Wallace () (Resources for the Future)

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Abstract

This paper provides a review and assessment of the debate over environmental federalism-the issue of the roles of different levels of government in environmental management. The paper begins with the presentation of three benchmark cases that provide a framework for thinking about the issue. It then offers a review, first of the theoretical literature and second of some new, provocative empirical literature on the race to the bottom. The paper contends that there remains, under certain circumstances, an important role for decentralized government in the setting of environmental standards and the design of regulatory programs. The central government, in addition to setting standards for "national" pollutants, has a fundamental contribution to make in supporting research in environmental science and pollution control technology and in providing needed information and guidance to state and local governments.

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Publisher Info
Paper provided by Resources For the Future in its series Discussion Papers with number dp-01-54.

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Date of creation: 01 Nov 2001
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Handle: RePEc:rff:dpaper:dp-01-54

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Related research
Keywords: environmental federalism; environmental management; environmental policy; environmental regulation;

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Find related papers by JEL classification:
Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
H1 - Public Economics - - Structure and Scope of Government
H7 - Public Economics - - State and Local Government; Intergovernmental Relations

This paper has been announced in the following NEP Reports:

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. John A. List & Mitch Kunce, 2000. "Environmental Protection and Economic Growth: What Do the Residuals Tell Us?," Land Economics, University of Wisconsin Press, vol. 76(2), pages 267-282. [Downloadable!] (restricted)
  2. Henderson, J Vernon, 1996. "Effects of Air Quality Regulation," American Economic Review, American Economic Association, vol. 86(4), pages 789-813, September. [Downloadable!] (restricted)
    Other versions:
  3. List, John A. & Mason, Charles F., 2001. "Optimal Institutional Arrangements for Transboundary Pollutants in a Second-Best World: Evidence from a Differential Game with Asymmetric Players," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 277-296, November. [Downloadable!] (restricted)
  4. John A. List & W. Warren McHone & Daniel L. Millimet, 2003. "Effects of air quality regulation on the destination choice of relocating plants," Oxford Economic Papers, Oxford University Press, vol. 55(4), pages 657-678, October.
  5. Farrell, Alex & Carter, Robert & Raufer, Roger, 1999. "The NOx Budget: market-based control of tropospheric ozone in the northeastern United States," Resource and Energy Economics, Elsevier, vol. 21(2), pages 103-124, May. [Downloadable!] (restricted)
  6. Randy Becker & Vernon Henderson, 2000. "Effects of Air Quality Regulations on Polluting Industries," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 379-421, April. [Downloadable!] (restricted)
  7. Oates, Wallace E. & Schwab, Robert M., 1988. "Economic competition among jurisdictions: efficiency enhancing or distortion inducing?," Journal of Public Economics, Elsevier, vol. 35(3), pages 333-354, April. [Downloadable!] (restricted)
  8. Case, Anne C. & Rosen, Harvey S. & Hines, James Jr., 1993. "Budget spillovers and fiscal policy interdependence : Evidence from the states," Journal of Public Economics, Elsevier, vol. 52(3), pages 285-307, October. [Downloadable!] (restricted)
  9. List, John A & Bulte, Erwin H & Shogren, Jason F, 2002. " "Beggar Thy Neighbor": Testing for Free Riding in State-Level Endangered Species Expenditures," Public Choice, Springer, vol. 111(3-4), pages 303-15, June. [Downloadable!] (restricted)
  10. Daniel L. Millimet, 2003. "Assessing the Empirical Impact of Environmental Federalism," Journal of Regional Science, Blackwell Publishing, vol. 43(4), pages 711-733. [Downloadable!] (restricted)
  11. John A. List & Shelby Gerking, 2000. "Regulatory Federalism and Environmental Protection in the United States," Journal of Regional Science, Blackwell Publishing, vol. 40(3), pages 453-471. [Downloadable!] (restricted)
  12. 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, vol. 33(1), pages 132-163, March. [Downloadable!] (restricted)
  13. Parry, Ian, 2001. "How Large are the Welfare Costs of Tax Competition?," Discussion Papers dp-01-28, Resources For the Future. [Downloadable!]
    Other versions:
  14. Farrell, Alex, 2000. "The NOx Budget: A Look at the First Year," The Electricity Journal, Elsevier, vol. 13(2), pages 83-93, March. [Downloadable!] (restricted)
  15. Gordon, Roger H, 1986. "Taxation of Investment and Savings in a World Economy," American Economic Review, American Economic Association, vol. 76(5), pages 1086-1102, December. [Downloadable!] (restricted)
  16. List, John A. & Co, Catherine Y., 2000. "The Effects of Environmental Regulations on Foreign Direct Investment," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 1-20, July. [Downloadable!] (restricted)
  17. Fredriksson, Per G. & Millimet, Daniel L., 2002. "Strategic Interaction and the Determination of Environmental Policy across U.S. States," Journal of Urban Economics, Elsevier, vol. 51(1), pages 101-122, January. [Downloadable!] (restricted)
  18. Wilson, John D., 1986. "A theory of interregional tax competition," Journal of Urban Economics, Elsevier, vol. 19(3), pages 296-315, May. [Downloadable!] (restricted)
  19. Tim Jeppesen & John A. List & Henk Folmer, 2002. "Environmental Regulations and New Plant Location Decisions: Evidence from a Meta-Analysis," Journal of Regional Science, Blackwell Publishing, vol. 42(1), pages 19-49. [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. Fredriksson, Per G. & Mani, Muthukumara & Wollscheid, Jim R., 2006. "Environmental federalism : a panacea or Pandora's box for developing countries?," Policy Research Working Paper Series 3847, The World Bank. [Downloadable!]
  2. Hua Wang & Wenhua Di, 2002. "The determinants of Government environmental performance - an empirical analysis of Chinese townships," Policy Research Working Paper Series 2937, The World Bank. [Downloadable!]
  3. Hilary Sigman, 2003. "Letting States do the Dirty Work: State Responsibility for Federal Environmental Regulation," NBER Working Papers 9451, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Eric Helland & Andrew B. Whitford, . "Pollution Incidence and Political Jurisdiction: Evidence from the TRI," Claremont Colleges Working Papers 2002-28, Claremont Colleges. [Downloadable!]
  5. T. Persson, 2009. "Linking the Northeast states of the US mitigation program to the EU Emission Trading Scheme—Implications and costs," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 14(5), pages 399-408, June. [Downloadable!] (restricted)
  6. Chakraborty, Lekha, 2006. "Determining Environmental Quality in a Federal Setting: An Empirical Analysis of Subnational Governments in India," MPRA Paper 7605, University Library of Munich, Germany. [Downloadable!]
  7. Francesco Prota & Francesco Contò, 2004. "Location decision of polluting firms and environmental policy," ERSA conference papers ersa04p413, European Regional Science Association. [Downloadable!]
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