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Spatial Dimensions of Environmental Policies for Trans-Boundary Externalities - A Spatial Price Equilibrium Approach

Author

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  • Erik T. Verhoef

    (Vrije Universiteit Amsterdam)

  • Peter Nijkamp

    (Vrije Universiteit Amsterdam)

Abstract

This paper presents a framework for analysing spatial aspects of environmental policies in the regulation of trans-boundary externalities. A spatial price equilibrium model for two regions is constructed, where interactions between these regions can occur via trade and transport, via mutual environmental spill-overs due to the externality that arises from production, and via tax competition when the regions do not behave cooperatively. Explicit attention is also given to the additional complications arising from emissions caused by the endogenous transport flows.

Suggested Citation

  • Erik T. Verhoef & Peter Nijkamp, 1998. "Spatial Dimensions of Environmental Policies for Trans-Boundary Externalities - A Spatial Price Equilibrium Approach," Tinbergen Institute Discussion Papers 98-079/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:19980079
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    References listed on IDEAS

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    1. Markusen James R. & Morey Edward R. & Olewiler Nancy D., 1993. "Environmental Policy when Market Structure and Plant Locations Are Endogenous," Journal of Environmental Economics and Management, Elsevier, vol. 24(1), pages 69-86, January.
    2. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
    3. Krutilla, Kerry, 1991. "Environmental regulation in an open economy," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 127-142, March.
    4. Erik Verhoef & Peter Nijkamp, 1997. "The Adoption of Energy Efficiency Enhancing Technologies," Tinbergen Institute Discussion Papers 97-077/3, Tinbergen Institute.
    5. James R. MARKUSEN, 2021. "International Externalities And Optimal Tax Structures," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 16, pages 341-355, World Scientific Publishing Co. Pte. Ltd..
    6. James R. Markusen, 1975. "Cooperative Control of International Pollution and Common Property Resources," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 89(4), pages 618-632.
    7. Walter C. Labys & Chin W. Yang, 1997. "Spatial Price Equilibrium As A Foundation To Unified Spatial Commodity Modeling," Papers in Regional Science, Wiley Blackwell, vol. 76(2), pages 199-228, April.
    8. E T Verhoef & J C J M van den Bergh & K J Button, 1997. "Transport, Spatial Economy, and the Global Environment," Environment and Planning A, , vol. 29(7), pages 1195-1213, July.
    9. Erik T. Verhoef & Jeroen C. J. M. Bergh, 1996. "A Spatial Price Equilibrium Model for Environmental Policy Analysis of Mobile and Immobile Sources of Pollution," Advances in Spatial Science, in: Jeroen C. J. M. Bergh & Peter Nijkamp & Piet Rietveld (ed.), Recent Advances in Spatial Equilibrium Modelling, chapter 10, pages 201-220, Springer.
    10. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
    11. 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.
    12. Rauscher, Michael, 1994. "On Ecological Dumping," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 822-840, Supplemen.
    13. Krutilla, Kerry, 1989. "Tariff burdens and optimal tariffs under alternative transport cost and market structures," Economics Letters, Elsevier, vol. 31(4), pages 381-386, December.
    14. Jeroen C.J.M. van den Bergh (ed.), 1999. "Handbook of Environmental and Resource Economics," Books, Edward Elgar Publishing, number 801.
    15. Jeroen C. J. M. Bergh & Peter Nijkamp & Piet Rietveld (ed.), 1996. "Recent Advances in Spatial Equilibrium Modelling," Advances in Spatial Science, Springer, number 978-3-642-80080-1, Fall.
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    Cited by:

    1. Verhoef, Erik T. & Nijkamp, Peter, 2002. "Externalities in urban sustainability: Environmental versus localization-type agglomeration externalities in a general spatial equilibrium model of a single-sector monocentric industrial city," Ecological Economics, Elsevier, vol. 40(2), pages 157-179, February.

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    More about this item

    Keywords

    environmental regulation; trans-boundary externalities; spatial policy analysis;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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