Transboundary Environmental Problems with a Mobile Population: Is There a Need for Central Policy?
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Hoel, Michael and Perry Shapiro
Number in series: 16
It is a widely held view that efficient environmental policies regulating transboundary pollution will be adopted only if there is interjurisdictional coordination. Efficient policies can be adopted as a result of interstate treaties or mandated by a central authority. However, if the policies of states are chosen to maximize the same function of own-citizen welfare, and if individuals migrate freely between states, constrained-efficient environmental regulatory policies are a non-cooperative equilibrium. The policies are constrained-efficient in equilibrium, the policy choices are the same as those found by maximizing the social welfare function subject to a policy feasibility constraint.
D6, H7, Q20, R23
Transboundary pollution, Population mobility, Federalism