Pricing and regulating affect environmental ethics
Effluent charges and tradeable permits are economically efficient but rarely used. A new explanation for this discrepancy is offered. Pricing may crowd out environmental ethics in the pricing, and via spillovers, also in non-pricing sectors. Pricing may therefore increase pollution, providing a reason why decision-makers tend to reject environmental pricing. Five propositions showing the conditions for counterproductive effects are advanced. They are consistent with available empirical evidence. Regulation by setting standards and subsidies damage environmental ethics less than pricing, because pollution is condoned. Damaging environmental ethics may prevent political action in favor of the environment. Copyright Kluwer Academic Publishers 1992
Volume (Year): 2 (1992)
Issue (Month): 4 (July)
|Contact details of provider:|| Web page: http://www.springerlink.com/link.asp?id=100263|
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.:
- Graetz, Michael J. & Reinganum, Jennifer F. & Wilde, Louis L., .
"The Tax Compliance Game: Toward an Interactive Theory of Law Enforcement,"
589, California Institute of Technology, Division of the Humanities and Social Sciences.
- Graetz, Michael J & Reinganum, Jennifer F & Wilde, Louis L, 1986. "The Tax Compliance Game: Toward an Interactive Theory of Law Enforcement," Journal of Law, Economics and Organization, Oxford University Press, vol. 2(1), pages 1-32, Spring.
- Buchanan, James M & Tullock, Gordon, 1975. "Polluters' Profits and Political Response: Direct Controls Versus Taxes," American Economic Review, American Economic Association, vol. 65(1), pages 139-47, March.
- Plott, Charles R., .
"Externalities and Corrective Policies in Experimental Markets,"
180, California Institute of Technology, Division of the Humanities and Social Sciences.
- Plott, Charles R, 1983. "Externalities and Corrective Policies in Experimental Markets," Economic Journal, Royal Economic Society, vol. 93(369), pages 106-27, March.
- Hahn, Robert W, 1990. " The Political Economy of Environmental Regulation: Towards a Unifying Framework," Public Choice, Springer, vol. 65(1), pages 21-47, April.
- Brennan, Geoffrey & Buchanan, James, 1983. "Predictive Power and the Choice among Regimes," Economic Journal, Royal Economic Society, vol. 93(369), pages 89-105, March.
- Hahn, Robert W, 1989. "Economic Prescriptions for Environmental Problems: How the Patient Followed the Doctor's Orders," Journal of Economic Perspectives, American Economic Association, vol. 3(2), pages 95-114, Spring.
- Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August.
- Frey, Bruno S. & Schneider, Friedrich & Pommerehne, Werner W., 1985. "Economists' opinions on environmental policy instruments: Analysis of a survey," Journal of Environmental Economics and Management, Elsevier, vol. 12(1), pages 62-71, March.
- Henry, Claude, 1990. "Microeconomics and public decision making when geography matters," European Economic Review, Elsevier, vol. 34(2-3), pages 249-271, May.
- Kenneth Arrow, 1970. "Political and Economic Evaluation of Social Effects and Externalities," NBER Chapters, in: The Analysis of Public Output, pages 1-30 National Bureau of Economic Research, Inc.
- Wright, William F. & Aboul-Ezz, Mohamed E., 1988. "Effects of extrinsic incentives on the quality of frequency assessments," Organizational Behavior and Human Decision Processes, Elsevier, vol. 41(2), pages 143-152, April.
When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:2:y:1992:i:4:p:399-414. 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: (Guenther Eichhorn)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.