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The Existence and Uniqueness of Optimal Pollution Policy in the Presence of Victim Defense Measures

  • McKitrick, Ross
  • Collinge, Robert A.

It is to be expected that rational peole defend themselves against pollution externalities, at the very least through spatial separation from the source. Bu even in the simplist models, defensive generates nonconvexities, multiple optima, and inconclusive policy guidance. This calls into question the theory of environmental policy, yet the problem has been largely ignored. This paper derives a sufficient condition for a uniquely optimal emissions level in the presence of defensive activity.

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File URL: http://www.sciencedirect.com/science/article/B6WJ6-465N916-6/2/b68cd85296aad53f1b227b1e4c9a1670
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Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 44 (2002)
Issue (Month): 1 (July)
Pages: 106-122

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Handle: RePEc:eee:jeeman:v:44:y:2002:i:1:p:106-122
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622870

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  1. de Bovenberg, A Lans & Mooij, Ruud A, 1994. "Environmental Levies and Distortionary Taxation," American Economic Review, American Economic Association, vol. 84(4), pages 1085-89, September.
  2. 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 425-37, November.
  3. Collinge, Robert A. & Bailey, Martin J., 1983. "Optimal quasi-market choice in the presence of pollution externalities," Journal of Environmental Economics and Management, Elsevier, vol. 10(3), pages 221-232, September.
  4. Tideman, T Nicolaus & Tullock, Gordon, 1976. "A New and Superior Process for Making Social Choices," Journal of Political Economy, University of Chicago Press, vol. 84(6), pages 1145-59, December.
  5. Kohn, Robert E, 1997. "Avoidance Costs and the Entry-Exit Condition on Polluting Firms," Scottish Journal of Political Economy, Scottish Economic Society, vol. 44(2), pages 216-24, May.
  6. repec:ner:tilbur:urn:nbn:nl:ui:12-152985 is not listed on IDEAS
  7. Bailey, Martin J, 1997. " The Demand Revealing Process: To Distribute the Surplus," Public Choice, Springer, vol. 91(2), pages 107-26, April.
  8. Mishan, E J, 1974. "What Is the Optimal Level of Pollution?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1287-99, Nov.-Dec..
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