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Strategic Delegation of Environmental Policy Making

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  • H.J. Roelfsema

Abstract

A common claim is that nations should cooperate in environmental policy making. However, there is little empirical support that noncooperative decision making results in too low environmental standards and taxes. We develop a theoretical model and show that if the median voter cares sufficiently for the environment, she has an incentive to delegate policy making to a politician that cares more for the environment than she does herself. By doing so, she mitigates the`race to the bottom' in environmental taxes. In contrast, if environmental policies are determined cooperatively with other countries, the median voter has an incentive to delegate policy making to a politician that cares less for the environment than she does herself, so as to free ride on international environmental agreements.

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Bibliographic Info

Paper provided by Utrecht School of Economics in its series Working Papers with number 04-11.

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Date of creation: 2004
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Handle: RePEc:use:tkiwps:0411

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Keywords: environmental policy; international policy coordination; strategic delegation;

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References

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  1. Didier Laussel & Raymond Riezman, 2000. "The Sources of Protectionist Drift in Representative Democracies," Econometric Society World Congress 2000 Contributed Papers 1086, Econometric Society.
  2. John A. List & Shelby Gerking, 2000. "Regulatory Federalism and Environmental Protection in the United States," Journal of Regional Science, Wiley Blackwell, vol. 40(3), pages 453-471.
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Citations

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Cited by:
  1. Keisuke Hattori, 2010. "Strategic Voting for Noncooperative Environmental Policies in Open Economies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 46(4), pages 459-474, August.
  2. Hattori, Keisuke & Kitamura, Takahiro, 2011. "Endogenous Timing in Strategic Environmental Policymaking," MPRA Paper 29337, University Library of Munich, Germany.
  3. Martin Gregor & Lenka Stastna, 2012. "The decentralization tradeoff for complementary spillovers," Review of Economic Design, Springer, vol. 16(1), pages 41-69, March.
  4. Perino, Grischa, 2010. "How delegation improves commitment," Economics Letters, Elsevier, vol. 106(2), pages 137-139, February.
  5. Leo Wangler & Juan-Carlos Altamirano-Cabrera & Hans-Peter Weikard, 2013. "The political economy of international environmental agreements: a survey," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 13(3), pages 387-403, September.
  6. R. Emre Aytimur & Aristotelis Boukouras & Robert Schwager, 2012. "The Citizen-Candidate Model with Imperfect Policy Control," CESifo Working Paper Series 3900, CESifo Group Munich.
  7. Robert Hahn & Robert Ritz, 2014. "Optimal Altruism in Public Good Provision," Cambridge Working Papers in Economics 1403, Faculty of Economics, University of Cambridge.
  8. Fredriksson, Per G. & Wang, Le & Mamun, Khawaja A., 2011. "Are politicians office or policy motivated? The case of U.S. governors' environmental policies," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 241-253, September.
  9. Wolfgang Habla & Ralph Winkler, 2011. "Political influence on non-cooperative international climate policy," Diskussionsschriften dp1106, Universitaet Bern, Departement Volkswirtschaft.
  10. Kimiko Terai, 2008. "International Coordination and Domestic Politics," Working Papers 080907, University of California-Irvine, Department of Economics.
  11. Katarina Elofsson, 2011. "Delegation of Decision-Rights for Wetlands," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 50(2), pages 285-303, October.
  12. Fredriksson, Per G. & Matschke, Xenia & Minier, Jenny, 2010. "Environmental policy in majoritarian systems," Journal of Environmental Economics and Management, Elsevier, vol. 59(2), pages 177-191, March.
  13. B. Andrew Chupp, 2011. "Spillovers and Taxes: What Drives Strategic Competition in Environmental Policies?," Working Paper Series 20110402, Illinois State University, Department of Economics.
  14. Xiao Chen & Alan Woodland, 2013. "International trade and climate change," International Tax and Public Finance, Springer, vol. 20(3), pages 381-413, June.

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