The Existence and Uniqueness of Optimal Pollution Policy in the Presence of Victim Defense Measures
It is to be expected that rational peole defend themselves against pollution externalities, at the very least through spatial separation from the source. Bu even in the simplist models, defensive generates nonconvexities, multiple optima, and inconclusive policy guidance. This calls into question the theory of environmental policy, yet the problem has been largely ignored. This paper derives a sufficient condition for a uniquely optimal emissions level in the presence of defensive activity.
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|Date of creation:||1998|
|Date of revision:|
|Contact details of provider:|| Postal: Guelph, Ontario, N1G 2W1|
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- Kohn, Robert E, 1997. "Avoidance Costs and the Entry-Exit Condition on Polluting Firms," Scottish Journal of Political Economy, Scottish Economic Society, vol. 44(2), pages 216-24, May.
- de Bovenberg, A Lans & Mooij, Ruud A, 1994.
"Environmental Levies and Distortionary Taxation,"
American Economic Review,
American Economic Association, vol. 84(4), pages 1085-89, September.
- Mishan, E J, 1974. "What Is the Optimal Level of Pollution?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1287-99, Nov.-Dec..
- Bailey, Martin J, 1997. "The Demand Revealing Process: To Distribute the Surplus," Public Choice, Springer, vol. 91(2), pages 107-26, April.
- Collinge, Robert A. & Bailey, Martin J., 1983. "Optimal quasi-market choice in the presence of pollution externalities," Journal of Environmental Economics and Management, Elsevier, vol. 10(3), pages 221-232, September.
- Shibata, Hirofumi & Winrich, J Steven, 1983. "Control of Pollution when the Offended Defend Themselves," Economica, London School of Economics and Political Science, vol. 50(200), pages 425-37, November.
- Tideman, T Nicolaus & Tullock, Gordon, 1976. "A New and Superior Process for Making Social Choices," Journal of Political Economy, University of Chicago Press, vol. 84(6), pages 1145-59, December.
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