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Environmentalists' Behaviour and Environmental Policies policies

  • Joan Canton

    (University of Ottawa)

In this partial equilibrium and static model, the impact of environmentalism on two countries' environmental policies is presented. First, the only (indirect) way environmentalists influence the choice of pollution taxes is through a negative term in the welfare function in Home. It is defined as passive environmentalism (PE). Second, this article is a first attempt to consider domestic environmentalists lobbying a foreign government. It is defined as active environmentalism (AE). Our contribution is threefold. We emphasize first that the way environmentalists act is paramount to study the consequences of their actions. Passive or active environmentalisms have very different impacts on environmental policies. Second, we show that lobbying activities can be counter-productive for environmentalists. Third, we characterize cases in which the presence of environmentalists has a non-ambiguous positive impact on welfare.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2009.76.

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Date of creation: Sep 2009
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Handle: RePEc:fem:femwpa:2009.76
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  1. Masahiro Endoh, 2005. "Cross-Border Political Donations and Pareto-Efficient Tariffs," Working Papers 915, Economic Growth Center, Yale University.
  2. Canton, Joan, 2008. "Redealing the cards: How an eco-industry modifies the political economy of environmental taxes," Resource and Energy Economics, Elsevier, vol. 30(3), pages 295-315, August.
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  10. Schulze, Gunther G. & Ursprung, Heinrich W. (ed.), 2001. "International Environmental Economics: A Survey of the Issues," OUP Catalogue, Oxford University Press, number 9780198297666, March.
  11. John A List & Daniel M Sturm, 2006. "How Elections Matter: Theory and Evidence from Environmental Policy," The Quarterly Journal of Economics, MIT Press, vol. 121(4), pages 1249-1281, November.
  12. Bernheim, B Douglas & Whinston, Michael D, 1986. "Menu Auctions, Resource Allocation, and Economic Influence," The Quarterly Journal of Economics, MIT Press, vol. 101(1), pages 1-31, February.
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  14. Barnett, A H, 1980. "The Pigouvian Tax Rule under Monopoly," American Economic Review, American Economic Association, vol. 70(5), pages 1037-41, December.
  15. Bhagwati, Jagdish N & Brecher, Richard A & Hatta, Tatsuo, 1983. "The Generalized Theory of Transfers and Welfare: Bilateral Transfers in a Multilateral World," American Economic Review, American Economic Association, vol. 73(4), pages 606-18, September.
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  17. Ulph, Alistair, 1996. "Environmental Policy and International Trade when Governments and Producers Act Strategically," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 265-281, May.
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