Are environmental policies counterproductive?

Marie-Françoise Calmette and Isabelle Pechoux
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Marie-Françoise Calmette: TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Isabelle Pechoux: TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: Environmental problems are often amplified by agglomeration of activities. We show that environmental policies may be counterproductive: by reducing polluting emissions, they reduce also the agents' disutility of pollution and increase their incentive to agglomerate. The result may be more pollution.

Keywords: Environmental policies; Concentration of activities (search for similar items in EconPapers)
Date: 2007
Note: View the original document on HAL open archive server: https://hal.science/hal-04411293v1
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Citations: View citations in EconPapers (1)

Published in Economics Letters, 2007, 95 (2), pp.186-191. ⟨10.1016/j.econlet.2006.10.001⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04411293

DOI: 10.1016/j.econlet.2006.10.001

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