| Authors |
Tsakiris, N., Hatzipanayotou, P. and Michael, M. |
| Title |
Welfare Ranking of Environmental Policies in the Presence of Capital Mobility and Cross-border Pollution |
| Abstract |
We construct a general equilibrium model of two regions with cross-border pollution, and with inter-regional (RCM) or international (ICM) capital mobility. Each region uses emission taxes, or intra- regionally, or inter-regionally tradable emission permits to reduce pollution. We show that the non-cooperative settings of all three instruments are always inefficient relative to their cooperative settings. When regions are symmetric, then (i) with RCM the non-cooperative setting of intra-regionally tradable emissions permits is welfare superior to that of the other two instruments, and (ii) with ICM the non-cooperative settings of intra-regionally tradable emission permits and of emission taxes are equivalent and superior to that of inter-regionally tradable emission permits. |
| Creation Date |
2015-07-17 |
| Keywords |
Cross-border pollution, Tradable emission permits, Capital mobility, Welfare ranking |
| Classification JEL |
F18, F21, H21 |
| File |
Welfare.Ranking.of.Environmental.Policies.pdf (728619 bytes) |
| File-Function |
First version |
|
Copyright © 2009 [D.I.E.S.S. A.U.E.B.]. All rights reserved.
|
