Competition in regional environmental policies when plant locations are endogenous


Journal article


James Markusen, Edward R. Morey, Nancy Olewiler
Journal of Public Economics, vol. 56, 1995, pp. 55-77

DOI: https://www.sciencedirect.com/science/article/abs/pii/004727279401419O?via%3Dihub

Semantic Scholar DOI
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APA   Click to copy
Markusen, J., Morey, E. R., & Olewiler, N. (1995). Competition in regional environmental policies when plant locations are endogenous. Journal of Public Economics, 56, 55–77. https://doi.org/https://www.sciencedirect.com/science/article/abs/pii/004727279401419O?via%3Dihub


Chicago/Turabian   Click to copy
Markusen, James, Edward R. Morey, and Nancy Olewiler. “Competition in Regional Environmental Policies When Plant Locations Are Endogenous.” Journal of Public Economics 56 (1995): 55–77.


MLA   Click to copy
Markusen, James, et al. “Competition in Regional Environmental Policies When Plant Locations Are Endogenous.” Journal of Public Economics, vol. 56, 1995, pp. 55–77, doi:https://www.sciencedirect.com/science/article/abs/pii/004727279401419O?via%3Dihub.


BibTeX   Click to copy

@article{james1995a,
  title = {Competition in regional environmental policies when plant locations are endogenous},
  year = {1995},
  journal = {Journal of Public Economics},
  pages = {55-77},
  volume = {56},
  doi = {https://www.sciencedirect.com/science/article/abs/pii/004727279401419O?via%3Dihub},
  author = {Markusen, James and Morey, Edward R. and Olewiler, Nancy}
}

Abstract: A two-region model is presented in which an imperfectly competitive firm produces a good with increasing returns at the plant level. Production of the good causes local pollution. The firm decides whether to maintain plants in both regions, serve both regions from a single plant or shut down. If the disutility of pollution is high enough, the two regions will compete by increasing their environmental taxes (standards) until the polluting firm is driven from the market. Alternatively, if the disutility from pollution is not as great, the regions will usually compete by undercutting each other's pollution tax rates.
Keywords: Environmental policy; Tax competition; Plant location 




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