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Environmental policy and wage setting

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  • Campo, Maria Luz

Abstract

This paper studies the interaction between the performance of firms and unions and the environmental policy chosen by governments when there is a negative environmental externality from production of a good which only affects the country where the firm is located. I assume that governments choose an upper limit on emissions, unions choose the wage rates and firms choose the employment level. Specifically, I analyze the effect that unionized labor markets have on environmental policy. Resumen: En este artículo estudiamos el efecto del comportamiento de empresas y trabajadores sobre la política medioambiental, cuando existe contaminación local. Suponemos que el gobierno elige la política medioambiental, basada en un límite sobre las emisiones, mientras que los sindicatos (si hay) eligen el salario y las empresas el nivel de empleo. En concreto, analizamos el efecto de que los trabajadores estén o no sindicados en la política medioambiental. Palabras clave: sindicato monopolista, estándares medioambientales.

Suggested Citation

  • Campo, Maria Luz, 2004. "Environmental policy and wage setting," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 4(07).
  • Handle: RePEc:ags:earnsa:28730
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    File URL: http://purl.umn.edu/28730
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    More about this item

    Keywords

    monopoly union model; emission standards; Environmental Economics and Policy; J30; J51; Q28;

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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