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Location decision of polluting firms and environmental policy

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  • Francesco Prota
  • Francesco Contò

Abstract

The delocation of firms is often viewed as a major outcome of a stiff environmental policy. In this paper, we study the impact of a strict anti-pollution policy pursued by a government on domestic firms locational decisions and determine the main variables that interact with such a policy. Some preliminary welfare implications are also provided. Keywords: Environmental policy; Plant location; Imperfect competition. JEL classification: H7; R3; D4.

Suggested Citation

  • Francesco Prota & Francesco Contò, 2004. "Location decision of polluting firms and environmental policy," ERSA conference papers ersa04p413, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa04p413
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    References listed on IDEAS

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    More about this item

    Keywords

    environmental policy; plant location; imperfect competition. jel classification: h7; r3; d4.;
    All these keywords.

    JEL classification:

    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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