Environmental regulation and trade openness in the presence of private mitigation
Acknowledging the differential ability of individuals to privately mitigate the consequences of domestic pollution for their health is essential for an understanding of their demands for regulation of the environment and of trade in dirty goods, and for analysis of the implications of these demands for equilibrium policy choices. In a small open economy with exogenous policy, we first explain how private mitigation at a cost results in an unequal distribution of the health consequences of pollution in a manner consistent with epidemiologic studies, and consequently how the benefits and costs of trade in dirty goods interact with choices concerning private mitigation to further polarize the interests of citizens concerning environmental stringency. The economy is then embedded in a broader political economy setting, and simulated to investigate the role of private mitigation in shaping political equilibria. We show that when citizens can choose between mitigating the health consequences of domestic pollution privately and reducing pollution through public policy, the same polarization of interests underlies equilibrium policy choices in both democratic and autocratic regimes.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- McKitrick, R. & Collinge, R.A., 1998.
"The Existence and Uniqueness of Optimal Pollution Policy in the Presence of Victim Defense Measures,"
1998-6, University of Guelph, Department of Economics and Finance.
- McKitrick, Ross & Collinge, Robert A., 2002. "The Existence and Uniqueness of Optimal Pollution Policy in the Presence of Victim Defense Measures," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 106-122, July.
- Seema Jayachandran, 2008.
"Air Quality and Early-Life Mortality: Evidence from Indonesia's Wildfires,"
NBER Working Papers
14011, National Bureau of Economic Research, Inc.
- Seema Jayachandran, 2009. "Air Quality and Early-Life Mortality: Evidence from Indonesia’s Wildfires," Journal of Human Resources, University of Wisconsin Press, vol. 44(4).
- Copeland, Brian R., 2005. "Policy Endogeneity and the Effects of Trade on the Environment," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(1), April.
- Hettich,Walter & Winer,Stanley L., 1999.
"Democratic Choice and Taxation,"
Cambridge University Press, number 9780521622912, December.
- Margrethe Winslow, 2005. "Is Democracy Good for the Environment?," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 48(5), pages 771-783.
- Brian R. Copeland & M. Scott Taylor, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 109(3), pages 755-787.
- HOTTE, Louis & WINER, Stanley L., 1998.
"Political Influence, Economic Interests and Endogenous Tax Structure in a Computable Equilibrium Framework: with Applicatioon to the United States, 1973 and 1983,"
Cahiers de recherche
9802, Universite de Montreal, Departement de sciences economiques.
- Hotte, Louis & Winer, Stanley L, 2001. "Political Influence, Economic Interests and Endogenous Tax Structure in a Computable Equilibrium Framework: With Application to the United States, 1973 and 1983," Public Choice, Springer, vol. 109(1-2), pages 69-99, October.
- Louis Hotte & Stanley L. Winer, 2000. "Political Influence, Economic Interests and Endogenous Tax Structure in a Computable Equilibrium Framework: with Application to the United States, 1973 and 1983," Carleton Economic Papers 00-11, Carleton University, Department of Economics, revised Oct 2001.
- Hotte, L. & Winer, S.L., 1998. "Political Influence, Economic Interests and Endogenous Tax Structure in a Computable Equilibrium Framework: With Applicatioon to the United States, 1973 and 1983," Cahiers de recherche 9802, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Brooks, Nancy & Sethi, Rajiv, 1997. "The Distribution of Pollution: Community Characteristics and Exposure to Air Toxics," Journal of Environmental Economics and Management, Elsevier, vol. 32(2), pages 233-250, February.
- Pethig, Rudiger, 1976. "Pollution, welfare, and environmental policy in the theory of Comparative Advantage," Journal of Environmental Economics and Management, Elsevier, vol. 2(3), pages 160-169, February.
- Jamie Pearce & Simon Kingham & Peyman Zawar-Reza, 2006. "Every breath you take? Environmental justice and air pollution in Christchurch, New Zealand," Environment and Planning A, Pion Ltd, London, vol. 38(5), pages 919-938, May.
- Acemoglu,Daron & Robinson,James A., 2006.
"Economic Origins of Dictatorship and Democracy,"
Cambridge University Press, number 9780521855266, December.
- Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-874, September.
- Kahn, Matthew E & Matsusaka, John G, 1997. "Demand for Environmental Goods: Evidence from Voting Patterns on California Initiatives," Journal of Law and Economics, University of Chicago Press, vol. 40(1), pages 137-173, April.
- Fredriksson, Per G., 1997. "The Political Economy of Pollution Taxes in a Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 33(1), pages 44-58, May.
- Congleton, Roger D, 1992. "Political Institutions and Pollution Control," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 412-421, August.
- Clas Eriksson & Joakim Persson, 2003. "Economic Growth, Inequality, Democratization, and the Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(1), pages 1-16, May.
- Shibata, Hirofumi & Winrich, J Steven, 1983. "Control of Pollution when the Offended Defend Themselves," Economica, London School of Economics and Political Science, vol. 50(200), pages 425-437, November.
- Torras, Mariano & Boyce, James K., 1998. "Income, inequality, and pollution: a reassessment of the environmental Kuznets Curve," Ecological Economics, Elsevier, vol. 25(2), pages 147-160, May.
- Timothy J. Bartik, 2008.
"Evaluating the Benefits of Non-marginal Reductions in Pollution Using Information on Defensive Expenditures,"
Book chapters authored by Upjohn Institute researchers,
in: Joseph Herriges & Catherine L. Kling (ed.), Revealed Preference Approaches to Environmental Valuation, volume 0, pages 459-475
W.E. Upjohn Institute for Employment Research.
- Bartik, Timothy J., 1988. "Evaluating the benefits of non-marginal reductions in pollution using information on defensive expenditures," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 111-127, March.
- Coughlin, Peter & Nitzan, Shmuel, 1981. "Electoral outcomes with probabilistic voting and Nash social welfare maxima," Journal of Public Economics, Elsevier, vol. 15(1), pages 113-121, February.
- Schleich, Joachim, 1999. "Environmental quality with endogenous domestic and trade policies1," European Journal of Political Economy, Elsevier, vol. 15(1), pages 53-71, March.
- Courant, Paul N. & Porter, Richard C., 1981. "Averting expenditure and the cost of pollution," Journal of Environmental Economics and Management, Elsevier, vol. 8(4), pages 321-329, December.
- Verdier, Thierry, 2004. "Socially Responsible Trade Integration: A Political Economy Perspective," CEPR Discussion Papers 4699, C.E.P.R. Discussion Papers.
- Hotte, Louis & Long, Ngo Van & Tian, Huilan, 2000. "International trade with endogenous enforcement of property rights," Journal of Development Economics, Elsevier, vol. 62(1), pages 25-54, June.
- Dasgupta, Susmita & Hamilton, Kirk & Pandey, Kiran D. & Wheeler, David, 2006. "Environment During growth: Accounting for governance and vulnerability," World Development, Elsevier, vol. 34(9), pages 1597-1611, September.
- McAusland, Carol, 2003. "Voting for pollution policy: the importance of income inequality and openness to trade," Journal of International Economics, Elsevier, vol. 61(2), pages 425-451, December.
- Bengt Kristrom & Pere Riera, 1996. "Is the income elasticity of environmental improvements less than one?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 7(1), pages 45-55, January.
- Rosado, Marcia A. & Cunha-E-S , Maria A. & Ducla-Soares, Maria M. & Nunes, Luis C., 2006. "Combining averting behavior and contingent valuation data: an application to drinking water treatment in Brazil," Environment and Development Economics, Cambridge University Press, vol. 11(06), pages 729-746, December.
- Hanna, Brid Gleeson, 2007. "House values, incomes, and industrial pollution," Journal of Environmental Economics and Management, Elsevier, vol. 54(1), pages 100-112, July.
- Neidell, Matthew J., 2004. "Air pollution, health, and socio-economic status: the effect of outdoor air quality on childhood asthma," Journal of Health Economics, Elsevier, vol. 23(6), pages 1209-1236, November.
- Aidt, Toke S., 1998. "Political internalization of economic externalities and environmental policy," Journal of Public Economics, Elsevier, vol. 69(1), pages 1-16, July.
- Evans, Mary F. & Smith, V. Kerry, 2005. "Do new health conditions support mortality-air pollution effects?," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 496-518, November.
- Farzin, Y. Hossein & Bond, Craig A., 2006. "Democracy and environmental quality," Journal of Development Economics, Elsevier, vol. 81(1), pages 213-235, October.
When requesting a correction, please mention this item's handle: RePEc:eee:deveco:v:97:y:2012:i:1:p:46-57. 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: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.