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Any need for coordination of policies towards transit traffic with a negative local externality?

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  • Thomas Bjørner

Abstract

International transit traffic between countries can be expected to increase in the future. This paper investigates whether international policy coordination is appropriate in the case of international transit traffic causing a local environmental externality. This issue is analysed in a two-country model where traffic is used as an input in production. It is found that individual optimization of the countries is likely to result in an outcome with less than optimal international traffic, i.e. too little pollution compared with optimum. Copyright Kluwer Academic Publishers 1996

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  • Thomas Bjørner, 1996. "Any need for coordination of policies towards transit traffic with a negative local externality?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 8(2), pages 221-245, September.
    • Handle: RePEc:kap:enreec:v:8:y:1996:i:2:p:221-245
    DOI: 10.1007/BF00357365
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    1. Markusen, James R. & Morey, Edward R. & Olewiler, Nancy, 1995. "Competition in regional environmental policies when plant locations are endogenous," Journal of Public Economics, Elsevier, vol. 56(1), pages 55-77, January.
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    Cited by:

    1. Bruno de Borger & Stef Proost, 2004. "Vertical and horizontal tax competition in the transport sector," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(4), pages 45-64.
    2. Feder, Christophe, 2018. "Decentralization and spillovers: A new role for transportation infrastructure," Economics of Transportation, Elsevier, vol. 13(C), pages 36-47.
    3. De Borger, Bruno & Proost, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Economics of Transportation, Elsevier, vol. 1(1), pages 35-48.

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