Spatial dimensions of environmental policies for trans-boundary externalities : a spatial price equilibrium approach

Erik T. Verhoef and Peter Nijkamp

This paper presents a framework for analysing spatial aspects of environmental policies in the regulation of trans-boundary externalities. A spatial price equilibrium model for two regions is constructed, where interactions between these regions can occur via trade and transport, via mutual environmental spill-overs due to the externality that arises from production, and via tax competition when the regions do not behave cooperatively. Explicit attention is also given to the additional complications arising from emissions caused by the endogenous transport flows.

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Year of publication:	1998
Authors:	Verhoef, Erik T. ; Nijkamp, Peter
Publisher:	Rotterdam [u.a.] : Tinbergen Inst.
Subject:	environmental regulation \| trans-boundary externalities \| spatial policy analysis \| Umweltpolitik \| Environmental policy \| Theorie \| Theory \| Externer Effekt \| Externalities \| Regionalökonomik \| Regional economics \| Grenzüberschreitende Umweltbelastung \| Transboundary pollution \| Räumliches Gleichgewichtsmodell \| Spatial equilibrium model \| Wohlfahrtsanalyse \| Welfare analysis