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Location decision of polluting firms and environmental policy

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Author Info
Francesco Prota ()
Francesco Contò ()

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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.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p413.

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Date of creation: Aug 2004
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Handle: RePEc:wiw:wiwrsa:ersa04p413

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  1. Kennedy Peter W., 1994. "Equilibrium Pollution Taxes in Open Economies with Imperfect Competition," Journal of Environmental Economics and Management, Elsevier, vol. 27(1), pages 49-63, July. [Downloadable!] (restricted)
  2. Oates, Wallace, 2001. "A Reconsideration of Environmental Federalism," Discussion Papers dp-01-54, Resources For the Future. [Downloadable!]
  3. Hoel, Michael, 1997. " Environmental Policy with Endogenous Plant Locations," Scandinavian Journal of Economics, Blackwell Publishing, vol. 99(2), pages 241-59, June. [Downloadable!] (restricted)
  4. Markusen, James R. & Morey, Edward R. & Olewiler, Nancy, 1995. "Competition in regional environmental policies when plant locations are endogenous," Journal of Public Economics, Elsevier, vol. 56(1), pages 55-77, January. [Downloadable!] (restricted)
  5. Motta, Massimo & Thisse, Jacques-Francois, 1994. "Does environmental dumping lead to delocation?," European Economic Review, Elsevier, vol. 38(3-4), pages 563-576, April. [Downloadable!] (restricted)
  6. Michael Rauscher, 1995. "Environmental regulation and the location of polluting industries," International Tax and Public Finance, Springer, vol. 2(2), pages 229-244, August. [Downloadable!] (restricted)
  7. Nannerup, Niels, 2001. "Equilibrium pollution taxes in a two industry open economy," European Economic Review, Elsevier, vol. 45(3), pages 519-532, March. [Downloadable!] (restricted)
  8. Rauscher, Michael, 1994. "Environmental Regulation and the Location of Polluting Industries," CEPR Discussion Papers 1032, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  9. Carraro, C. & Soubeyran, A., 1998. "R&D Cooperation, Innovation Spillovers and Firm Location in a Model of Environmental Policy," G.R.E.Q.A.M. 98a43, Universite Aix-Marseille III.
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