The Challenge of Addressing Consumption Pollutants with Fiscal Policy

Gregmar Galinato ()

No 2014-1, Working Papers from School of Economic Sciences, Washington State University

Abstract: We develop a theoretical model that elucidates the relationship between the quality of governance, composition of government spending and pollution as a by-product of the consumption process. We find that a shift in government spending towards goods that alleviate market failure increases income, which raises consumption pollution, but also increases environmental regulations, which decreases consumption pollution. Conditional on the government adopting a democratic regime, the effect through environmental regulations outweigh the effect through income leading to lower consumption pollution. We estimate an empirical model and find that the results support our theoretical predictions.

Keywords: Government spending; public goods; consumption based pollution; democracy (search for similar items in EconPapers)
JEL-codes: H11 H20 O13 Q53 (search for similar items in EconPapers)
Pages: 42 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://faculty.ses.wsu.edu/WorkingPapers/Galinato/WP2014-1.pdf First version, 2014 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://faculty.ses.wsu.edu/WorkingPapers/Galinato/WP2014-1.pdf [307 Temporary Redirect]--> https://ses.wsu.edu/faculty/)

Related works:
Journal Article: The challenge of addressing consumption pollutants with fiscal policy (2017)
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:wsu:wpaper:galinato-11

Access Statistics for this paper

More papers in Working Papers from School of Economic Sciences, Washington State University Contact information at EDIRC.
Bibliographic data for series maintained by Danielle Engelhardt ().