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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

Suggested Citation

  • 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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    References listed on IDEAS

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    1. Hoel, Michael, 2011. "Environmental R&D," Memorandum 12/2010, Oslo University, Department of Economics.
    2. Nijkamp, Peter, 1994. "Roads toward environmentally sustainable transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 28(4), pages 261-271, July.
    3. Verhoef, Erik, 1994. "External effects and social costs of road transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 28(4), pages 273-287, July.
    4. 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.
    5. 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.
    6. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, December.
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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. De Borger, Bruno & Proost, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Economics of Transportation, Elsevier, pages 35-48.

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