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Strategic Environmental Standards, Wage Incomes and the Location of Polluting Firms

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  • Juan Bárcena-ruiz
  • María Garzón

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Abstract

The purpose of this paper is tostudy how the choice of environmental standardsby governments is affected by the existence ofwage incomes when firms locations areendogenous. In developed countries labor isunionized, which allows positive wage incomesto arise. Thus, each government has incentivesto persuade firms to locate in its countrysince social welfare depends on suchincomes. But, as pollution damages theenvironment, each government will only try toattract polluting firms to thecountry, to obtain the wage incomes, whenthe valuation of environmental damage showsthat it is low. Copyright Kluwer Academic Publishers 2003

Suggested Citation

  • Juan Bárcena-ruiz & María Garzón, 2003. "Strategic Environmental Standards, Wage Incomes and the Location of Polluting Firms," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(2), pages 121-139, February.
  • Handle: RePEc:kap:enreec:v:24:y:2003:i:2:p:121-139
    DOI: 10.1023/A:1022837008712
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Juan Bárcena-Ruiz & María Garzón, 2014. "Multiproduct Firms and Environmental Policy Coordination," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(3), pages 407-431, November.
    2. Brcena-Ruiz, Juan Carlos & Garzn, Mara Begoa, 2009. "Relocation and public ownership of firms," Journal of the Japanese and International Economies, Elsevier, vol. 23(1), pages 71-85, March.
    3. Luciano Fanti, 2015. "Environmental Standards and Cournot Duopoly: A Stability Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 61(4), pages 577-593, August.
    4. Bárcena-Ruiz, Juan Carlos & Campo, María Luz, 2012. "Partial cross-ownership and strategic environmental policy," Resource and Energy Economics, Elsevier, vol. 34(2), pages 198-210.
    5. Juan Carlos Bárcena-Ruiz, 2011. "Production externality and productivity of labor," Hacienda Pública Española, IEF, vol. 196(1), pages 65-78, january.
    6. Lin-Ti Tan, 2005. "Spatial Economic Theory of Pollution Control under Stochastic Emissions," IEAS Working Paper : academic research 05-A009, Institute of Economics, Academia Sinica, Taipei, Taiwan.
    7. Juan Bárcena-Ruiz & María Garzón, 2006. "Mixed Oligopoly and Environmental Policy," Spanish Economic Review, Springer;Spanish Economic Association, vol. 8(2), pages 139-160, June.
    8. Jihad C. Elnaboulsi, 2015. "Environmental Regulation and Policy Design: The Impact of the Regulator?s Ecological Conscience on the Tax Setting Process," Working Papers 2015-11, CRESE.
    9. Bárcena Ruiz, Juan Carlos & Garzón San Felipe, María Begoña, 2011. "Relocation and Investment in R&D by Firms," IKERLANAK 2011-52, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
    10. Michel Cavagnac, 2003. "Environmental standard setting by a supra-regional authority: customisation or convergence?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(4), pages 415-437, December.

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    Keywords

    environmental standards; location; wage incomes;

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