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On NIMBY and commuting

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  • Bert Saveyn

Abstract

The paper highlights that the race-to-top result shown by Wellisch (J. Urban Econ. 37:290–310, 1995 ) and Kunce and Shogren (J. Environ. Econ. Manage. 50:212–224, 2005a ) may be exacerbated by inter-jurisdictional commuting, leading to increased NIMBY behavior (Not-In-My-Back-Yard) among metropolitan jurisdictions. Local governments try to push polluting economic activities to the neighboring jurisdictions, while commuting guarantees their residents’ labor income. Commuting generates a leakage of the local production benefits of pollution as non-resident commuters take the wages to their home jurisdictions. Jurisdictions may thus face a prisoners’ dilemma, in which they all push for pollution levels that are too low (race-to-the-top). Fiercer competition in the common labor market due to a larger number of jurisdictions intensifies this race-to-the-top in environmental regulation; whereas transboundary pollution, local ownership of firms, pollution taxes, and payroll taxes reduce the incentive for overly restrictive pollution policies. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Bert Saveyn, 2013. "On NIMBY and commuting," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(2), pages 293-311, April.
    • Handle: RePEc:kap:itaxpf:v:20:y:2013:i:2:p:293-311
    DOI: 10.1007/s10797-012-9228-x
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    References listed on IDEAS

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    Cited by:

    1. Daisuke Matsuzaki & Yoshiyasu Ono, 2021. "Regional subsidies and interregional labor movement," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(3), pages 557-577, June.

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    More about this item

    Keywords

    Commuting; NIMBY; Inter-jurisdictional competition; Environmental federalism; H7; Q5; R5;
    All these keywords.

    JEL classification:

    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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