EconPapers    
Economics at your fingertips  
 

Interregional competition, spillovers and attachment in a federation

Emilson Silva () and Chikara Yamaguchi

Journal of Urban Economics, 2010, vol. 67, issue 2, 219-225

Abstract: We examine decentralized environmental policy making in a federation characterized by decentralized leadership and imperfect labor mobility due to attachment to regions. Energy consumption generates positive consumption benefits, but energy supply generates federal air pollution. Regional authorities regulate energy supply by controlling supplies of pollution permits. Energy and pollution permits are traded in interregional markets. The center redistributes incomes after it observes regional supplies of pollution permits. Regions are populated by mobile and immobile households and profits are expatriated. We show that the subgame perfect equilibrium for the federal policy game played by regional and central authorities is socially optimal.

Keywords: Federation; Interregional; spillovers; Redistribution; Labor; attachment (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0094-1190(09)00063-1
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Interregional Competition, Spillovers and Attachment in a Federation (2003) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:67:y:2010:i:2:p:219-225

Access Statistics for this article

Journal of Urban Economics is currently edited by S.S. Rosenthal and W.C. Strange

More articles in Journal of Urban Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-04-18
Handle: RePEc:eee:juecon:v:67:y:2010:i:2:p:219-225