Public versus personal welfare: an aspect of environmental policymaking in developing countries
In this paper, we shed light on the nature of the interaction between an environmental authority (EA) and the polluting sector in a developing country (DC) when there is uncertainty about the relative weight that this EA places on public versus its own welfare. Within the context of this general issue, we answer three specific questions for any arbitrary time period t. First, we determine the expected level of pollution as well as the actual pollution in the polluting sector. Second, we compute the mean social loss arising in part from the uncertainty about the relative weight that the EA places on public versus its own welfare. Finally, we solve for the optimal value of the parameter which measures the relative weight the EA places on public versus its own welfare.
Volume (Year): 15 (2007)
Issue (Month): 9 ()
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- D. Lee & A. Batabyal, .
"Dynamic environmental policy in developing countries with a dual economy,"
2000-29, Utah State University, Department of Economics.
- Lee, Dug Man & Batabyal, Amitrajeet A., 2002. "Dynamic environmental policy in developing countries with a dual economy," International Review of Economics & Finance, Elsevier, vol. 11(2), pages 191-206, May.
- Barro, Robert J. & Gordon, David B., 1983.
"Rules, discretion and reputation in a model of monetary policy,"
Journal of Monetary Economics,
Elsevier, vol. 12(1), pages 101-121.
- Robert J. Barro & David B. Gordon, 1983. "Rules, Discretion and Reputation in a Model of Monetary Policy," NBER Working Papers 1079, National Bureau of Economic Research, Inc.
- Michael C. Farmer & Alan Randall, 1997. "Policies for Sustainability: Lessons from an Overlapping Generations Model," Land Economics, University of Wisconsin Press, vol. 73(4), pages 608-622.
- John C. V. Pezzey, 1997. "Sustainability Constraints versus "Optimality" versus Intertemporal Concern, and Axioms versus Data," Land Economics, University of Wisconsin Press, vol. 73(4), pages 448-466.
- David Backus & John Driffill, 1985. "Rational Expectations and Policy Credibility Following a Change in Regime," Review of Economic Studies, Oxford University Press, vol. 52(2), pages 211-221.
- Batabyal, Amitrajeet A, 1998. "Environmental Policy in Developing Countries: A Dynamic Analysis," Review of Development Economics, Wiley Blackwell, vol. 2(3), pages 293-304, October.
- Maurice Obstfeld & Kenneth S. Rogoff, 1996. "Foundations of International Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262150476.
- Batabyal, Amitrajeet A. & Beladi, Hamid, 2002. "A dynamic analysis of protection and environmental policy in a small trading developing country," European Journal of Operational Research, Elsevier, vol. 143(1), pages 197-209, November.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-07o10003. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
If references are entirely missing, you can add them using this form.