Non-cooperative pollution control in an inter-jurisdictional setting

Robin Boadway, Zhen Song and Jean-François Tremblay

Regional Science and Urban Economics, 2013, vol. 43, issue 5, 783-796

Abstract: This paper examines various circumstances under which decentralized pollution policies can be efficient both in federal settings and in multi-region settings with labor mobility. We consider a model in which pollution control policies are set by regional governments non-cooperatively and pollution damages are borne by the residents of all regions. We characterize the efficiency of pollution policies, and of population allocation among regions, in a variety of scenarios, including when pollution policies are enacted before interregional transfers are determined by the federal government and before migration occurs; when migration decisions are taken before policy decisions; in the absence of a central government if regional governments can make voluntary interregional transfers; when decisions over pollution control policies are followed by voluntary contributions by regions to a national public good; when regions can commit to matching the abatement efforts of each other; and when regions can commit to specific levels of abatement contingent on the emissions of other regions not exceeding some maximum level.

Keywords: Decentralized pollution control; Migration; Interregional transfers (search for similar items in EconPapers)
JEL-codes: H23 H41 H79 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:43:y:2013:i:5:p:783-796

DOI: 10.1016/j.regsciurbeco.2013.07.003

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