The incidence of environmental regulation in a developing economy with sector-specific unemployment: a note
DOI:
https://doi.org/10.17811/ebl.1.1.2012.3-11Abstract
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.
References
Bárcena-Ruiz, J.C. and Garzón, M.B. (2002) Environmental taxes and strategic delegation, Spanish Economic Review, 4, 301-310.
Bárcena-Ruiz, J.C. and Garzón, M.B. (2006) Mixed oligopoly and environmental policy, Spanish Economic Review, 8, 139-160.
Batra, R.N. and Lahiri, S. (1987) Imported technologies, urban unemployment and the North-South dialogue, Journal of Development Economics 25, 21-32.
Beladi, H. and Chao, C.-C. (2006a) Mixed ownership, unemployment, and welfare for a developing economy, Review of Development Economics, 10, 604-611.
Beladi, H. and Chao, C.-C. (2006b) Environmental policy, comparative advantage, and welfare for a developing economy, Environment and Development Economics, 11, 559-568.
Beladi, H. and Frasca, R. (1999) Pollution control under an urban binding minimum wage, Annals of Regional Science, 33, 523-533.
Bommer, R. and G.G. Schulze (1999) Environmental improvement with trade liberalization, European Journal of Political Economy, 15, 639-661.
Buchanan, J. and Tullock, G. (1975) Polluters’ profits and political response: direct control versus taxes, American Economic Review, 65, 139-147.
Carlsson, F. (2000) Environmental taxation and strategic commitment in duopoly models, Environmental and Resource Economics, 15, 243-256.
Chao, C.C., Hazari, B. and Yu, E.H.S. (2006) Rising wage inequality in developing economies: privatization and competition, Journal of International Trade and Economic Development, 15, 375-385.
Daitoh, I. (2003) Environmental protection and urban unemployment: environmental policy reform in a polluted dualistic economy, Review of Development Economics, 7, 496-509.
Fullerton, D. and Heutel, G. (2007) The general equilibrium incidence of environmental taxes, Journal of Public Economics, 91, 571-591.
Harris, J.R. and Todaro, M. (1970) Migration, unemployment and development: a two-sector analysis, American Economic Review, 60, 126-142.
Neary, J.P. (1978) Dynamic stability and the theory of factor-market distortions, American Economic Review, 88, 671-682.
Neary, J.P. (1981) On the Harris-Todaro model with intersectoral capital mobility, Economica, 48, 219-234.
Neary, J.P. (1988) Stability of the mobile-capital Harris-Todaro model: some further results, Economica, 55, 123-127.
Ohori, S. (2006) Optimal environmental tax and level of privatization in an international duopoly, Journal of Regulatory Economics, 29, 225-233.
Rapanos, V.T. (1992) A note on externalities and taxation, Canadian Journal of Economics, 25, 226-232.
Rapanos, V.T. (2007) Environmental taxation in a dualistic economy, Environment and Development Economics, 12, 73-89.
Simpson, R.D. (1995) Optimal pollution taxation in a Cournot duopoly, Environmental and Resource Economics, 6, 359-369.
Wang, L.F.S. (1990) Unemployment and the backward incidence of pollution control, Journal of Environmental Economics and Management, 18, 292-298.
Downloads
Published
How to Cite
Issue
Section
License
The works published in this journal are subject to the following terms:
1. Oviedo University Press (the publisher) retains the property rights (copyright) of published works, and encourages and enables the reuse of the same under the license specified in paragraph 2.
© Ediuno. Ediciones de la Universidad de Oviedo / Oviedo University Press
2. The works are published in the online edition of the journal under a Creative Commons Attribution-Non Commercial-Non Derives 3.0 Spain (legal text). You can copy, use, distribute, transmit and publicly display, provided that: i) you cite the author and the original source of publication (journal, publisher and URL of the work), ii) they are not used for commercial purposes, iii) mentions the existence and specifications of this license.
3. Conditions of self-archiving. The author can archive the post-print version of the article (publisher’s version) on the author’s personal website and/or on the web of the institution where he belong, including a link to the page of the journal and putting the way of citation of the work. Economics and Business Letters and its URL https://reunido.uniovi.es/index.php/EBL/index are the only authorized source for correctly giving the reference of the publisher’s version in every mention of the article.
