Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 1998-07-30 Number: 98-079/3 Author-Name: Erik T. Verhoef Author-Email: everhoef@feweb.vu.nl Author-Workplace-Name: Vrije Universiteit Amsterdam Author-Name: Peter Nijkamp Author-Email: pnijkamp@feweb.vu.nl Author-Workplace-Name: Vrije Universiteit Amsterdam Title: Spatial Dimensions of Environmental Policies for Trans-Boundary Externalities - A Spatial Price Equilibrium Approach Abstract: 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. Classification-JEL: D62; Q48; R13 Keywords: environmental regulation; trans-boundary externalities; spatial policy analysis File-Url: https://papers.tinbergen.nl/98079.pdf File-Format: application/pdf File-Size: 135100 bytes Handle: RePEc:tin:wpaper:19980079