The incidence of environmental regulation in a developing economy with sector-specific unemployment: a note

Authors

  • Leonard F.S. Wang National University of Kaohsiung, Taiwan
  • Ya-Chin Wang Kun Shan University
  • Lihong Zhao China HuanQiu Contracting & Engineering Corporation

DOI:

https://doi.org/10.17811/ebl.1.1.2012.3-11

Abstract

This note investigates the effects of environmental regulation in a general-equilibrium model incorporating capital mobility and sector-specific unemployment. The government sets a maximum allowable level of environmental use in advance. This environmental use beneficially affects the production, but causes negative externality which is restricted by a regulating function. It specifically examines the effects of environmental regulation on output levels, factor returns, urban unemployment ratio, the incidence issue and the national income. Our analysis reveals that the trade-off relationship between environment and economic development is likely to exist.

Author Biographies

Leonard F.S. Wang, National University of Kaohsiung, Taiwan

Professor, Department of Applied Economics.

Ya-Chin Wang, Kun Shan University

Associate Professor, Department of Finance and Banking.

Lihong Zhao, China HuanQiu Contracting & Engineering Corporation

Division Manager

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Published

22-03-2012

How to Cite

Wang, L. F., Wang, Y.-C., & Zhao, L. (2012). The incidence of environmental regulation in a developing economy with sector-specific unemployment: a note. Economics and Business Letters, 1(1), 3–11. https://doi.org/10.17811/ebl.1.1.2012.3-11

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