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Energy policies in spatial systems: A spatial price equilibrium approach with heterogeneous regions and endogenous technologies

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  • Erik Teodoor Verhoef

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  • Peter Nijkamp

    ()

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 Teodoor Verhoef & Peter Nijkamp, 1998. "Energy policies in spatial systems: A spatial price equilibrium approach with heterogeneous regions and endogenous technologies," ERSA conference papers ersa98p113, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa98p113
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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. 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, Pion Ltd, London, vol. 29(7), pages 1195-1213, July.
    3. Kennedy Peter W., 1994. "Equilibrium Pollution Taxes in Open Economies with Imperfect Competition," Journal of Environmental Economics and Management, Elsevier, vol. 27(1), pages 49-63, July.
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    5. Fredriksson, Per G., 1997. "The Political Economy of Pollution Taxes in a Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 33(1), pages 44-58, May.
    6. Krutilla, Kerry, 1991. "Environmental regulation in an open economy," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 127-142, March.
    7. 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.
    8. Rauscher, Michael, 1994. "On Ecological Dumping," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 822-840, Supplemen.
    9. 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.
    10. Conrad Klaus, 1993. "Taxes and Subsidies for Pollution-Intensive Industries as Trade Policy," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 121-135, September.
    11. James R. Markusen, 1975. "Cooperative Control of International Pollution and Common Property Resources," The Quarterly Journal of Economics, Oxford University Press, vol. 89(4), pages 618-632.
    12. Verhoef, Erik T. & Nijkamp, Peter, 2003. "The adoption of energy-efficiency enhancing technologies.: Market performance and policy strategies in case of heterogeneous firms," Economic Modelling, Elsevier, vol. 20(4), pages 839-871, July.
    13. Alistair fnUlph, 1996. "Environmental policy instruments and imperfectly competitive international trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, pages 333-355.
    14. Markusen, James R., 1975. "International externalities and optimal tax structures," Journal of International Economics, Elsevier, pages 15-29.
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