Transboundary Pollution Control in Federal Systems

Silva, Emilson C. D.; Caplan, Arthur J.

doi:10.1006/jeem.1997.1008

Cited by 107 publications

(60 citation statements)

References 8 publications

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“…The debate continues whether fiscal decentralization will improve or deteriorate environmental quality [13][14][15][16]. Environmental federalism held the opinion that the local governments would pursue economic development at the price of heavy pollution emissions when the spillover effect 2 Discrete Dynamics in Nature and Society was taken into account; that is, the impact of fiscal decentralization on the quality of environment was negative [17]. The traditional environmental federalism held the similar point that environment pollution had significant externality and it would lead to the phenomenon of environment regulatory "race to the bottom," lowering the standards of environmental regulator [18].…”

Section: Literature Reviewmentioning

confidence: 99%

Socioeconomic Drivers of Environmental Pollution in China: A Spatial Econometric Analysis

Liu

Chen

Wei

2017

Discrete Dynamics in Nature and Society

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This paper studies the environmental pollution and its impacts in China using prefecture-level cities and municipalities data. Moran’sI, the widely used spatial autocorrelation index, provides a fairly strong pattern of spatial clustering of environmental pollution and suggests a fairly high stability of the positive spatial correlation. To investigate the driving forces of environmental pollution and explore the relationship between fiscal decentralization, economic growth, and environmental pollution, spatial Durbin model is used for this analysis. The result shows that fiscal decentralization of local unit plays a significant role in promoting the environmental pollution and the feedback effect of fiscal decentralization on environmental pollution is also positive, though it is not significant. The relationship of GDP per capita and environmental pollution shows inverted U-shaped curve. Due to the scale effect of secondary industry, the higher the level of secondary industry development in a unit is, the easier it is to attract the secondary industry in adjacent units, which mitigates the environmental pollution in adjacent units. Densely populated areas tend to deteriorate local environment, but environmental regulation in densely populated areas is often tighter than other areas, which reduces environmental pollution to a certain extent.

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Section: Literature Reviewmentioning

confidence: 99%

Socioeconomic Drivers of Environmental Pollution in China: A Spatial Econometric Analysis

Liu

Chen

Wei

2017

Discrete Dynamics in Nature and Society

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“…Silva and Caplan (1997) and Caplan et al (2000) analyze federal policy in the presence of transboundary externalities generated either by pollution or public consumption spill-overs. In these models, decentralized commitment proves beneficial since it allows externalities to be internalized.…”

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confidence: 99%

Tax competition in a fiscal union with decentralized leadership

Köthenbürger

2004

Journal of Urban Economics

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This paper examines capital tax competition in the presence of an interstate transfer policy without federal commitment. Lack of commitment implies that tax policy is chosen prior to federal transfers. The paper's main result is that ex-post federal policy internalizes horizontal fiscal externalities, insulating tax policy from capital mobility. Federal policy, however, introduces a new source of inefficiency unrelated to tax competition. Specifically, ex-post transfer payments prove to be equivalent to an interstate revenue-sharing system which may render federal intervention in the presence of fiscal externalities welfare-deteriorating relative to tax competition. JEL Code: H7, H3, H1.

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“…1 See also the related literature on environmental policy; e.g., Silva and Caplan (1997), Caplan and Silva (1999) and Aronsson, Jonsson and Sjögren (2006). 2 This is further emphasized by the recent …nancial crisis in the Euro-area, where the option of leaving the European Monetary Union (which is part of the EU) has been discussed in some of the member states.…”

Section: Introductionmentioning

confidence: 99%

A note on public goods in a decentralized fiscal union: Implications of a participation constraint

Aronsson¹,

Micheletto²,

Sjögren³

2014

Journal of Urban Economics

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This paper re-examines the question of whether federal ex-post redistribution in terms of public funds leads to under-provision of public goods by adding the assumption that the member states are free to leave the economic federation. We show that federal ex-post redistribution leads to e¢ cient provision of local and federal public goods under certain conditions. JEL Classi…cation: D61, H41, H77

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Transboundary Pollution Control in Federal Systems

Cited by 107 publications

References 8 publications

Socioeconomic Drivers of Environmental Pollution in China: A Spatial Econometric Analysis

Socioeconomic Drivers of Environmental Pollution in China: A Spatial Econometric Analysis

Tax competition in a fiscal union with decentralized leadership

A note on public goods in a decentralized fiscal union: Implications of a participation constraint

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