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| Author: | Hatzipanayotou, P. Lahiri, S. Michael, M.S. |
| Title: | Reforms of environmental policies in the presence of cross-border pollution and public-private clean-up |
| Journal: | Scandinavian Journal of Economics
2005 : VOL. 107:2, p. 315-333 |
| Index terms: | Environmental policy Pollution Pollution control |
| Language: | eng |
| Abstract: | A two-country model when pollutions from production is transmitted across borders is constructed. Pollution abatement is undertaken by both private producers and the public sector. Nash optimal levels of the policy instruments are characterized in the two countries: emission taxes and funds allocated for public abatement activities. The implications of a number of multilateral policy reforms are examined. One of the results is that the magnitude of the beneficial effect of a reform depends on the scope of the reform: if it is restricted to a subset of policy instruments, then the efficacy of environmental policy reform can be greatly undermined. |
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