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On the Political Economy of Environmental Policy

Author

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  • Gebhard Kirchgässner
  • Friedrich Schneider

Abstract

In the past there was hardly any use of economic instruments in environmental policy, mainly command and control measures were used. More recently, ecological taxes as well as tradable permits became more popular and voluntary agreements have been imple-mented. Using the Public Choice ap-proach we ask for the reasons of this wider acceptance of economic instru-ments. We conclude that the use of market based instru-ments in environmental policy has not in-creased very much and their impact on the actual situation is still rather low, but there is hope of at least some increase in the future.

Suggested Citation

  • Gebhard Kirchgässner & Friedrich Schneider, 2002. "On the Political Economy of Environmental Policy," CESifo Working Paper Series 741, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_741
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    References listed on IDEAS

    as
    1. Frey, Bruno S & Schneider, Friedrich, 1978. "A Politico-Economic Model of the United Kingdom," Economic Journal, Royal Economic Society, vol. 88(350), pages 243-253, June.
    2. Frey, Bruno S & Schneider, Friedrich, 1978. "An Empirical Study of Politico-Economic Interaction in the United States," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 174-183, May.
    3. Dewees, Donald N, 1983. "Instrument Choice in Environmental Policy," Economic Inquiry, Western Economic Association International, vol. 21(1), pages 53-71, January.
    4. repec:cup:apsrev:v:71:y:1977:i:04:p:1467-1487_26 is not listed on IDEAS
    5. de Bovenberg, A Lans & Mooij, Ruud A, 1994. "Environmental Levies and Distortionary Taxation," American Economic Review, American Economic Association, vol. 84(4), pages 1085-1089, September.
    6. Haucap, Justus & Kirstein, Roland, 2003. "Government Incentives When Pollution Permits Are Durable Goods," Public Choice, Springer, vol. 115(1-2), pages 163-183, April.
    7. B Hansjürgens, 1998. "The sulfur dioxide allowance-trading program in the USA: recent developments and lessons to be learned," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 16(3), pages 341-361, June.
    8. B Hansjürgens, 1998. "The Sulfur Dioxide Allowance-Trading Program in the USA: Recent Developments and Lessons to be Learned," Environment and Planning C, , vol. 16(3), pages 341-361, June.
    9. Kirchgassner, Gebhard & Pommerehne, Werner W, 1993. "Low-Cost Decisions as a Challenge to Public Choice," Public Choice, Springer, vol. 77(1), pages 107-115, September.
    10. Joskow, Paul L & Schmalensee, Richard, 1998. "The Political Economy of Market-Based Environmental Policy: The U.S. Acid Rain Program," Journal of Law and Economics, University of Chicago Press, vol. 41(1), pages 37-83, April.
    11. Kirchgassner, Gebhard & Kubler, Knut, 1992. "Symmetric or asymmetric price adjustments in the oil market : An empirical analysis of the relations between international and domestic prices in the Federal Republic of Germany, 1972-1989," Energy Economics, Elsevier, vol. 14(3), pages 171-185, July.
    12. Gebhard Kirchgässner & Ulrich Müller & Marcel Savioz, 1998. "Ecological Tax Reform and Involuntary Unemployment: Simulation Results for Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 134(III), pages 329-353, September.
    13. Paul Ekins & Stefan Speck, 1999. "Competitiveness and Exemptions From Environmental Taxes in Europe," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(4), pages 369-396, June.
    14. Joskow, Paul L & Schmalensee, Richard & Bailey, Elizabeth M, 1998. "The Market for Sulfur Dioxide Emissions," American Economic Review, American Economic Association, vol. 88(4), pages 669-685, September.
    15. Hibbs, Douglas Jr., 1992. "Partisan theory after fifteen years," European Journal of Political Economy, Elsevier, vol. 8(3), pages 361-373, October.
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    More about this item

    Keywords

    environmental policy; ecological taxes; tradable permits; voluntary agreements; voting behaviour; public bureaucracy; interest groups;

    JEL classification:

    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General

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