Transboundary Pollution Externalities: Think Globally, Act Locally?

Davide La Torre, Danilo Liuzzi () and Simone Marsiglio

Papers from arXiv.org

Abstract: We analyze the implications of transboundary pollution externalities on environmental policymaking in a spatial and finite time horizon setting. We focus on a simple regional optimal pollution control problem in order to compare the global and local solutions in which, respectively, the transboundary externality is and is not taken into account in the determination of the optimal policy by individual local policymakers. We show that the local solution is suboptimal and as such a global approach to environmental problems is effectively needed. Our conclusions hold true in different frameworks, including situations in which the spatial domain is either bounded or unbounded, and situations in which macroeconomic-environmental feedback effects are taken into account. We also show that if every local economy implements an environmental policy stringent enough, then the global average level of pollution will fall. If this is the case, over the long run the entire global economy will be able to achieve a completely pollution-free status.

Date: 2019-10
New Economics Papers: this item is included in nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://arxiv.org/pdf/1910.04469 Latest version (application/pdf)

Related works:
Journal Article: Transboundary pollution externalities: Think globally, act locally? (2021)
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:arx:papers:1910.04469

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().