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The Existence and Uniqueness of Optimal Pollution Policy in the Presence of Victim Defense Measures

  • McKitrick, R.
  • Collinge, R.A.

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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Paper provided by University of Guelph, Department of Economics and Finance in its series Working Papers with number 1998-6.

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Length: 23 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:gue:guelph:1998-6
Contact details of provider: Postal: Guelph, Ontario, N1G 2W1
Phone: (519) 824-4120 ext. 53898
Fax: (519) 763-8497
Web page: https://www.uoguelph.ca/economics/

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  1. 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.
  2. 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.
  3. 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..
  4. 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.
  5. Bailey, Martin J, 1997. " The Demand Revealing Process: To Distribute the Surplus," Public Choice, Springer, vol. 91(2), pages 107-26, April.
  6. 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.
  7. repec:ner:tilbur:urn:nbn:nl:ui:12-152985 is not listed on IDEAS
  8. 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.
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