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"Beggar Thy Neighbor": Testing for Free Riding in State-Level Endangered Species Expenditures

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  • List, John A
  • Bulte, Erwin H
  • Shogren, Jason F

Abstract

An important public policy question that remains unresolved is whether devolution will enhance sensible policy making by exploiting informational asymmetries or, instead, trigger a "beggar thy neighbor" response and stimulate free riding amongst localities. We analyze this question within the framework of U.S. environmental policymaking by scrutinizing a unique panel data set on state-level endangered species expenditure patterns. Our empirical estimates are consistent with the notion that states free ride, which may lead to an expenditure equilibrium that is not Pareto efficient. Copyright 2002 by Kluwer Academic Publishers

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  • List, John A & Bulte, Erwin H & Shogren, Jason F, 2002. ""Beggar Thy Neighbor": Testing for Free Riding in State-Level Endangered Species Expenditures," Public Choice, Springer, vol. 111(3-4), pages 303-315, June.
    • Handle: RePEc:kap:pubcho:v:111:y:2002:i:3-4:p:303-15
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    Cited by:

    1. Wallace E. Oates & Wallace E. Oates, 2004. "A Reconsideration of Environmental Federalism," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 7, pages 125-156, Edward Elgar Publishing.
    2. Mumbunan, Sonny & Ring, Irene & Lenk, Thomas, 2012. "Ecological fiscal transfers at the provincial level in Indonesia," UFZ Discussion Papers 06/2012, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    3. John A. List, 2014. "Using Field Experiments to Change the Template of How We Teach Economics," The Journal of Economic Education, Taylor & Francis Journals, vol. 45(2), pages 81-89, June.
    4. Ying She & Yaobin Liu & Yangu Deng & Lei Jiang, 2020. "Can China’s Government-Oriented Environmental Regulation Reduce Water Pollution? Evidence from Water Pollution Intensive Firms," Sustainability, MDPI, vol. 12(19), pages 1-19, September.
    5. Hallsworth, Michael & List, John A. & Metcalfe, Robert D. & Vlaev, Ivo, 2017. "The behavioralist as tax collector: Using natural field experiments to enhance tax compliance," Journal of Public Economics, Elsevier, vol. 148(C), pages 14-31.
    6. Edward López & R. Jewell, 2007. "Strategic institutional choice: Voters, states, and congressional term limits," Public Choice, Springer, vol. 132(1), pages 137-157, July.
    7. Nils Droste & Claudia Becker & Irene Ring & Rui Santos, 2018. "Decentralization Effects in Ecological Fiscal Transfers: A Bayesian Structural Time Series Analysis for Portugal," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(4), pages 1027-1051, December.
    8. Kumar, Surender & Managi, Shunsuke, 2009. "Compensation for environmental services and intergovernmental fiscal transfers: The case of India," Ecological Economics, Elsevier, vol. 68(12), pages 3052-3059, October.
    9. Jeffrey Flory & Uri Gneezy & Kenneth Leonard & John List, 2012. "Sex, competitiveness, and investment in offspring: On the origin of preferences," Artefactual Field Experiments 00072, The Field Experiments Website.
    10. Bonnie Harllee & Myungsup Kim & Michael Nieswiadomy, 2009. "Political influence on historical ESA listings by state: a count data analysis," Public Choice, Springer, vol. 140(1), pages 21-42, July.

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