Interjurisdictional competition in emission taxes under imperfect competition of local firms

Bayındır-Upmann T (1998)
European Journal of Political Economy 14(2): 345-368.

Zeitschriftenaufsatz | Veröffentlicht | Englisch
 
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Abstract / Bemerkung
In a world where direct trade instruments are banned and firms engage in imperfect competition, governments tend to (ab)use environmental policies in order to influence trade. In our model, when governments engage in tax competition, three possible cases may occur: In the two polar cases, either the environmental quality is too low and the provision level of public services is too high, or the reverse is true; in the medium case, however, both are too low. Hence, tax competition plausibly leads to `ecological dumping'. We contrast the competitive regime with a scenario of cooperative behavior. Due to three main effects—a fiscal, an environmental, and a production effect—governments tend to defect from cooperation by lowering rather than increasing their tax rates. To eliminate these perennial incentives to defect, an environmental agreement has to be sustained by complementary measures.
Erscheinungsjahr
1998
Zeitschriftentitel
European Journal of Political Economy
Band
14
Ausgabe
2
Seite(n)
345-368
ISSN
0176-2680
Page URI
https://pub.uni-bielefeld.de/record/2958452

Zitieren

Bayındır-Upmann T. Interjurisdictional competition in emission taxes under imperfect competition of local firms. European Journal of Political Economy. 1998;14(2):345-368.
Bayındır-Upmann, T. (1998). Interjurisdictional competition in emission taxes under imperfect competition of local firms. European Journal of Political Economy, 14(2), 345-368. https://doi.org/10.1016/S0176-2680(98)00011-1
Bayındır-Upmann, T. (1998). Interjurisdictional competition in emission taxes under imperfect competition of local firms. European Journal of Political Economy 14, 345-368.
Bayındır-Upmann, T., 1998. Interjurisdictional competition in emission taxes under imperfect competition of local firms. European Journal of Political Economy, 14(2), p 345-368.
T. Bayındır-Upmann, “Interjurisdictional competition in emission taxes under imperfect competition of local firms”, European Journal of Political Economy, vol. 14, 1998, pp. 345-368.
Bayındır-Upmann, T.: Interjurisdictional competition in emission taxes under imperfect competition of local firms. European Journal of Political Economy. 14, 345-368 (1998).
Bayındır-Upmann, Thorsten. “Interjurisdictional competition in emission taxes under imperfect competition of local firms”. European Journal of Political Economy 14.2 (1998): 345-368.

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