Strategic Environmental Standards, Wage Incomes and the Location of Polluting Firms

Juan Bárcena-Ruiz and María Garzon ()

Environmental & Resource Economics, 2003, vol. 24, issue 2, 139 pages

Abstract: The purpose of this paper is tostudy how the choice of environmental standardsby governments is affected by the existence ofwage incomes when firms locations areendogenous. In developed countries labor isunionized, which allows positive wage incomesto arise. Thus, each government has incentivesto persuade firms to locate in its countrysince social welfare depends on suchincomes. But, as pollution damages theenvironment, each government will only try toattract polluting firms to thecountry, to obtain the wage incomes, whenthe valuation of environmental damage showsthat it is low. Copyright Kluwer Academic Publishers 2003

Keywords: environmental standards; location; wage incomes (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (13)

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DOI: 10.1023/A:1022837008712

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