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Spatial aspects of pollution control when pollutants have synergistic effects: Evidence from a differential game with asymmetric information

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Listed:
  • Charles F. Mason

    (Department of Economics and Finance, University of Wyoming, Laramie, WY 82071-3985, USA)

  • John A. List

    (Department of Economics, College of Business Administration, University of Central Florida, Orlando, FL 32816-1400, USA)

Abstract

An asymmetric information differential game is utilized to explore the normative issue: should environmental regulations be carried out locally or centrally? Modeling localities as having superior information, or more leniency to adopt new environmental regulations, results from simulations indicate that local control Pareto dominates central control when enough synergism occurs between pollutants. In contrast to predictions made by those responsible for framing US environmental policy in the 1960s, these findings suggest an expanded future role for local governments in providing environmental protection, particularly in light of Tiebout's (1956) analysis of consumers who "vote with their feet" for their preferred basket of public services. "Practically all the things we've done in the federal government are like things Al Smith did as governor in New York." -Franklin Roosevelt (Schlesinger, 1960, p. 520)

Suggested Citation

  • Charles F. Mason & John A. List, 1999. "Spatial aspects of pollution control when pollutants have synergistic effects: Evidence from a differential game with asymmetric information," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 33(4), pages 439-452.
    • Handle: RePEc:spr:anresc:v:33:y:1999:i:4:p:439-452
    Note: Received: June 1997/Accepted: July 1998
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    Cited by:

    1. M. Breton & G. Martín-Herrán & G. Zaccour, 2006. "Equilibrium Investment Strategies in Foreign Environmental Projects," Journal of Optimization Theory and Applications, Springer, vol. 130(1), pages 23-40, July.
    2. Liu, Liyuan & Peng, Fei, 2015. "Environmental Protection and Economic Growth: An Optimal Pollution Controlling Model," MPRA Paper 76261, University Library of Munich, Germany.
    3. Sathya Gopalakrishnan & Dylan McNamara & Martin D. Smith & A. Brad Murray, 2017. "Decentralized Management Hinders Coastal Climate Adaptation: The Spatial-dynamics of Beach Nourishment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 761-787, August.
    4. Benarroch, Michael & Weder, Rolf, 2006. "Intra-industry trade in intermediate products, pollution and internationally increasing returns," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 675-689, November.

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