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Dynamic environmental policy in developing countries with a dual economy

Author

Listed:
  • D. Lee
  • A. Batabyal

Abstract

We analyze a dynamic model of environmental policy in a stylized developing country (DC) with a dual economy. This DC’s economy is distorted because the government subsidizes the exports of the non-polluting sector of the economy. We analyze the employment and output effects of three different pollution taxes. These taxes incorporate alternate assumptions about the DC government’s ability to commit to its announced course of action. We describe the taxes, we examine the dependence of these taxes on the extant distortion, and we stipulate the conditions that call for an activist policy, irrespective of the length of time to which the government can commit to its announced policy. Inter alia, our analysis shows why some DC governments may not be serious about environmental protection.

Suggested Citation

  • D. Lee & A. Batabyal, "undated". "Dynamic environmental policy in developing countries with a dual economy," Working Papers 2000-29, Utah State University, Department of Economics.
    • Handle: RePEc:usu:wpaper:2000-29
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    File URL: https://repec.bus.usu.edu/RePEc/usu/pdf/ERI2000-29.pdf
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    Cited by:

    1. is not listed on IDEAS
    2. Chen, Li-Ju & Lu, Lee-Jung & Tai, Meng-Yi & Hu, Shih-Wen & Wang, Vey, 2014. "Energy structure, energy policy, and economic sustainable development," International Review of Economics & Finance, Elsevier, vol. 34(C), pages 203-210.
    3. repec:tsa:wpaper:0007eco is not listed on IDEAS
    4. Adile TAMGUICHT, 2007. "Public versus personal welfare: an aspect of environmental policymaking in developing countries," Economics Bulletin, AccessEcon, vol. 15(9), pages 1-10.
    5. Marc, GERMAIN, 2005. "Impacts d’une politique de dépollution dans un modèle à la Heckscher-Ohlin dynamique," Discussion Papers (ECON - Département des Sciences Economiques) 2005010, Université catholique de Louvain, Département des Sciences Economiques.
    6. repec:ebl:ecbull:v:15:y:2007:i:9:p:1-10 is not listed on IDEAS
    7. Amitrajeet A. Batabyal, 2008. "Public Versus Personal Welfare: An Aspect Of Environmental Policymaking In Developing Countries," World Scientific Book Chapters, in: Dynamic And Stochastic Approaches To The Environment And Economic Development, chapter 13, pages 227-239, World Scientific Publishing Co. Pte. Ltd..

    More about this item

    Keywords

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    JEL classification:

    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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