Cooperation in Environmental Policy: A Spatial Approach
Loading...
Date
2006-07
Authors
Davies, Ronald B.
Naughton, Helen T. (Helen Tammela), 1976-
Journal Title
Journal ISSN
Volume Title
Publisher
University of Oregon, Dept of Economics
Abstract
Inefficient competition in emissions taxes creates benefits from international
cooperation. In the presence of cross-border pollution, proximate (neighboring)
countries may have greater incentives to cooperate than distant ones as illustrated by a
model of tax competition for mobile capital. Spatial econometrics is used to estimate
participation in 37 international environmental treaties. Data on 41 countries from
1980-1999 reveal evidence of increased cooperation among proximate countries.
Furthermore, the results indicate that FDI usually increases treaty participation. We
also find that both OECD and non-OECD countries respond positively to OECD
countries’ participation but the response to non-OECD countries is primarily from
similar countries. This suggests that the rich countries may lead others in setting
environmental quality.
Description
45 p.
Keywords
Environmental agreements, Foreign direct investment, Spatial econometrics