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Environmental Policy in Developing Countries: A Dynamic Analysis

Author

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  • Amitrajeet Batabyal

Abstract

A dynamic model is constructed of the environmental policy formulation process in a stylized developing country (DC). The paper analyzes the employment and output effects of three pollution control policies. These policies embody different assumptions about the DC government's ability to commit to its announced course of action. The timepath of the government's policy variable is characterized. Optimality calls for an activist policy, irrespective of the length of time to which the government can commit to its announced policy. However, the effects of this activist policy depend fundamentally on the government's period of commitment.

Suggested Citation

  • Amitrajeet Batabyal, 1998. "Environmental Policy in Developing Countries: A Dynamic Analysis," Review of Development Economics, Wiley Blackwell, vol. 2(3), pages 293-304, October.
    • Handle: RePEc:bla:rdevec:v:2:y:1998:i:3:p:293-304
    DOI: 10.1111/1467-9361.00043
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    Cited by:

    1. Amitrajeet A. Batabyal & Hamid Beladi, 2008. "A Dynamic Analysis Of Protection And Environmental Policy In A Small Trading Developing Country," World Scientific Book Chapters, in: Dynamic And Stochastic Approaches To The Environment And Economic Development, chapter 11, pages 189-212, World Scientific Publishing Co. Pte. Ltd..
    2. Ichiroh Daitoh, 2003. "Environmental Protection and Urban Unemployment: Environmental Policy Reform in a Polluted Dualistic Economy," Review of Development Economics, Wiley Blackwell, vol. 7(3), pages 496-509, August.
    3. Wang, Chao & Zhang, Yue-Jun, 2022. "The effect of environmental regulation and skill premium on the inflow of FDI:Evidence from Chinese industrial sectors," International Review of Economics & Finance, Elsevier, vol. 81(C), pages 227-242.
    4. Amitrajeet A. Batabyal & Dug Man Lee, 2008. "Dynamic Environmental Policy In Developing Countries With A Dual Economy," World Scientific Book Chapters, in: Dynamic And Stochastic Approaches To The Environment And Economic Development, chapter 10, pages 165-187, World Scientific Publishing Co. Pte. Ltd..
    5. Xinfei Li & Chang Xu & Baodong Cheng & Jingyang Duan & Yueming Li, 2021. "Does Environmental Regulation Improve the Green Total Factor Productivity of Chinese Cities? A Threshold Effect Analysis Based on the Economic Development Level," IJERPH, MDPI, vol. 18(9), pages 1-21, April.
    6. Amitrajeet A. Batabyal, 2008. "Public Versus Personal Welfare: An Aspect Of Environmental Policymaking In Developing Countries," World Scientific Book Chapters, in: Dynamic And Stochastic Approaches To The Environment And Economic Development, chapter 13, pages 227-239, World Scientific Publishing Co. Pte. Ltd..
    7. repec:ebl:ecbull:v:15:y:2007:i:9:p:1-10 is not listed on IDEAS
    8. Sheng-Huei Ko & Kuo-Hsing Kuo & Cheng-Te Lee & Chen Fang, 2017. "Environmental Tax And Return Urban–Rural Migration," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(02), pages 447-458, June.
    9. Batabyal, Amitrajeet A., 1995. "An Agenda For The Study Of Land Use, Wilderness Designation, And Resource Regulation In The American West," Economics Research Institute, ERI Study Papers 28360, Utah State University, Economics Department.
    10. Adile TAMGUICHT, 2007. "Public versus personal welfare: an aspect of environmental policymaking in developing countries," Economics Bulletin, AccessEcon, vol. 15(9), pages 1-10.

    More about this item

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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