Are NIMBY's commuters?
This paper considers a metropolitan area where residents can commute between several jurisdictions. These residents show NIMBY behavior (Not-In-My-Backyard). They try to preserve their living quality by pushing the polluting economic activity to the neighboring jurisdictions and keep their labor income as commuters. This induces a race-to-the-top among jurisdictions. Fiercer competition due to a higher number of jurisdictions intensifies this race-to-the-top; whereas commuting costs, pollution taxes, payroll taxes and bigger jurisdictions increase the incentive for more pollution.
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