The Effects of Pollution Taxes on Urban Areas with an Endogenous Plant Location
Journal
Environmental and Resource Economics
Journal Volume
29
Journal Issue
1
Pages
57-65
Date Issued
2004
Date
2004
Author(s)
Mai, Chao-Cheng
Abstract
This paper has integrated space into the effect of a direct pollution control on the pollution damage of heavily populated areas like CBD. This integration gives us some new insights into the effectiveness of a pollution tax as a pollution control device when the plant location of the firm is endogenized. It is shown that when the plant location is endogenous, as pollution taxes become higher, the firm moves its plant towards the CBD, causing higher pollution damage to the CBD residents, if the production function exhibits decreasing returns to scale.
Subjects
endogenous plant location; pollution taxes
SDGs
Other Subjects
Pollution damage; Pollution taxes; Location; Pollution control; Taxation; Urban planning; Pollution; industrial location; location decision; pollution tax; urban area
Type
journal article
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