Spatial Economic Theory of Pollution Control under Stochastic Emissions
AbstractThis paper examines the e ectiveness of environmental policies in curtailing pollution of a rm which is operating in a space economy under stochastic emissions. We consider a general n-input planar space production-location model, in which the output is produced jointly with the byproduct pollution. Although production is nonstochastic, the resulting pollution emission is assumed to have a random component, and the polluting rm must make its production and location decisions before the uncertainty is resolved. We provide some propositions concerning the comparative statics of the polluting rm's location choices, urban pollution concentration, and the relative impact of regulation via emission taxes to that of emission standards.
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Bibliographic InfoPaper provided by Institute of Economics, Academia Sinica, Taipei, Taiwan in its series IEAS Working Paper : academic research with number 05-A009.
Length: 18 pages
Date of creation: Oct 2005
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Web page: http://www.econ.sinica.edu.tw/index.php?foreLang=en
More information through EDIRC
location theory; pollution control; emission uncertainty;
Find related papers by JEL classification:
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
- R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
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