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Transboundary Spillovers and Decentralization of Environmental Policies

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Author Info
Hilary Sigman () (Rutgers University)

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Abstract

Most US federal environmental policies allow states to assume responsibility for implementation and enforcement of regulations; states with this responsibility are referred to as “authorized” or having “primacy.” Although such decentralization may have benefits, it may also have costs with pollution spillovers across states. This paper estimates these costs empirically by studying the free riding of states authorized under the Clean Water Act. The analysis examines water quality in rivers around the US and includes fixed effects for the location where water quality is monitored to address unobserved geographic heterogeneity. The estimated equations show a 4% degradation of water quality downstream of authorized states, with an environmental cost downstream of $17 million annually.

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Publisher Info
Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 200416.

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Length: 20 pages
Date of creation: 08 Sep 2004
Date of revision:
Handle: RePEc:rut:rutres:200416

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Related research
Keywords: decentralization; transboundary spillovers;

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Find related papers by JEL classification:
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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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. Gray, Wayne B. & Shadbegian, R.J.Ronald J., 2004. "'Optimal' pollution abatement--whose benefits matter, and how much?," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 510-534, May. [Downloadable!] (restricted)
    Other versions:
  2. 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)
  3. Hilary Sigman, 2002. "International Spillovers and Water Quality in Rivers: Do Countries Free Ride?," American Economic Review, American Economic Association, vol. 92(4), pages 1152-1159, September. [Downloadable!]
    Other versions:
  4. 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:
  5. James R. Markusen & Edward R. Morey & Nancy Olewiler, 1992. "Noncooperative Equilibria in Regional Environmental Policies When Plant Locations are Endogenous," NBER Working Papers 4051, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Murdoch, James C & Sandler, Todd & Sargent, Keith, 1997. "A Tale of Two Collectives: Sulphur versus Nitrogen Oxides Emission Reduction in Europe," Economica, London School of Economics and Political Science, vol. 64(254), pages 281-301, May. [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. Arik Levinson, . "Environmental Regulatory Competition: A Status Report and Some New Evident," Working Papers gueconwpa~02-02-07, Georgetown University, Department of Economics. [Downloadable!]
  9. Helland, Eric & Whitford, Andrew B., 2003. "Pollution incidence and political jurisdiction: evidence from the TRI," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 403-424, November. [Downloadable!] (restricted)
  10. Kahn, Matthew E., 2004. "Domestic pollution havens: evidence from cancer deaths in border counties," Journal of Urban Economics, Elsevier, vol. 56(1), pages 51-69, July. [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. Per G. Fredriksson & Xenia Matschke & Jenny Minier, 2008. "Environmental Policy in Majoritarian Systems," Working papers 2008-01, University of Connecticut, Department of Economics, revised Sep 2009. [Downloadable!]
  2. Hilary Sigman, 2007. "Decentralization and Environmental Quality: An International Analysis of Water Pollution," NBER Working Papers 13098, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Dinar, Ariel & Kemper, Karin & Blomquist, William & Kururulasuriya, Pradeep, 2006. "The Process and Performance of Decentralization of River Basin Resource Management: A Global Analysis," 2006 Annual meeting, July 23-26, Long Beach, CA 21093, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. 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!]
  5. Leah G. Traub & Hilary Sigman, 2007. ""Cooperative Federalism" as a Strategic Interaction: Voluntary Decentralization in Environmental Policy," NBER Working Papers 13238, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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