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Efficiency of Non-cooperative Emission Taxes in Perfectly Competitive Markets

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  • Roland Magnusson

    (Department of Political and Economic Studies, University of Helsinki)

Abstract

With the current efforts to regulate the emissions of greenhouse gases and other cross border pollutants, the question of environmental federalism is as important as ever. By generalising the model presented by Oates and Schwab (1987, 1988), we show that the well established result within environmental federalism, that the government of a small country has no incentive to depart from the cooperative choice of environmental standards, does not hold for pollutants that have regional or global characteristics, as e.g. sulphur dioxide and carbon dioxide has.

Suggested Citation

  • Roland Magnusson, 2010. "Efficiency of Non-cooperative Emission Taxes in Perfectly Competitive Markets," Finnish Economic Papers, Finnish Economic Association, vol. 23(2), pages 88-93, Autumn.
    • Handle: RePEc:fep:journl:v:23:y:2010:i:2:p:88-93
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    References listed on IDEAS

    as
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    3. Alistair Ulph & Laura Valentini, 2001. "Is Environmental Dumping Greater when Plants are Footloose?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 673-688, December.
    4. Ulph, Alistair & Valentini, Laura, 2001. " Is Environmental Dumping Greater When Plants Are Footloose?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 673-688, December.
    5. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
    6. Oates, Wallace E. & Schwab, Robert M., 1988. "Economic competition among jurisdictions: efficiency enhancing or distortion inducing?," Journal of Public Economics, Elsevier, vol. 35(3), pages 333-354, April.
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    More about this item

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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