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Environmental federalism : a panacea or Pandora's box for developing countries?

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Author Info

  • Fredriksson, Per G.
  • Mani, Muthukumara
  • Wollscheid, Jim R.

Abstract

This paper provides new empirical evidence to the debate on the optimal locus of power over environmental policymaking in developing countries. The authors develop a simple lobby group model with mobile capital. The model predicts that a decentralized institutional structure leads to weaker environmental policy due to more intensive lobbying by capital owners and workers. They test this prediction using novel cross-sectional developing country data. The results are consistent with the prediction of the model, in particular for air pollution policies. The authors also find that the effect of decentralization declines with a greater degree of trade openness. They believe this is the first developing country evidence on the environmental policy effects of federalism.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3847.

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Date of creation: 01 Feb 2006
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Handle: RePEc:wbk:wbrwps:3847

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Keywords: Environmental Economics&Policies; Economic Theory&Research; Banks&Banking Reform; Environmental Governance; Green Issues;

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References

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Citations

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Cited by:
  1. Paul Missios & Ida Ferrara & Halis Murat Yildiz, 2011. "Inter-regional Competition, Comparative Advantage, and Environmental Federalism," Working Papers, Ryerson University, Department of Economics 027, Ryerson University, Department of Economics.
  2. Owen, Ann L. & Videras, Julio, 2008. "Trust, cooperation, and implementation of sustainability programs: The case of Local Agenda 21," Ecological Economics, Elsevier, Elsevier, vol. 68(1-2), pages 259-272, December.

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