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| Author: | Barcena-Ruiz, J. C. Garzon, M. B. |
| Title: | Strategic Environmental Standards, Wage Incomes and the Location of Polluting Firms |
| Journal: | Environmental and Resource Economics
2003 : FEB, VOL. 24:2, p. 121-139 |
| Index terms: | ENVIRONMENT STANDARDS PAY INCOMES |
| Language: | eng |
| Abstract: | The purpose of this paper is to study how the choice of environmental standards by governments is affected by the existence of wage incomes when firms locations are endogenous. In developed countries labor is unionized, which allows positive wage incomes to arise. Thus, each government has incentives to persuade firms to locate in its country since social welfare depends on such incomes. But, as pollution damages the environment, each government will only try to attract polluting firms to the country, to obtain the wage incomes, when the valuation of environmental damage shows that it is low. The paper provides a substantial list of references on this subject. |
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