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The political economy of environmental decision making

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  • Ursprung, Heinrich W.
Abstract
The purpose of this paper is to investigate environmental policy making from a positive point of view. Unlike traditional normative economic policy analyis, this paper is thus not concerned with advancing policy recommendations for the benefit of the policy makers. Jts objective is rather to explain why environmental policy is conducted in the manner actually observed. In particular 1 will address the following two crucial questions: Firstly, why is the level of environmental protection not higher considering the extent of pollution, and, secondly, why do governments tend to employ inefficient Instruments if and when they attempt to deal with environmental problems at all. Before proposing answers to these two questions in sections 6 and 7, 1 briefly discuss the causes of environmental pollution (section 1). investigate the conditions under which state intervention in the economy is really warranted (section 2) and give a summary of the available environmental policy instruments (section 3). Section 4 then presents the basic structure of the political-economic approach and section 5 reviews the main types of models which are employed in endogenous policy theory to portray the political process. In the concluding section 8 a topical issue is addressed: I attempt to shed some light on the relationship between environmental concerns and international trade.

Suggested Citation

  • Ursprung, Heinrich W., 1992. "The political economy of environmental decision making," Discussion Papers, Series II 176, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    • Handle: RePEc:zbw:kondp2:176
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    References listed on IDEAS

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    1. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    2. Bartel, Ann P & Thomas, Lacy Glenn, 1987. "Predation through Regulation: The Wage and Profit Effects of the Occupational Safety and Health Administration and the Environmental Protection Agency," Journal of Law and Economics, University of Chicago Press, vol. 30(2), pages 239-264, October.
    3. Pashigian, B Peter, 1984. "The Effect of Environmental Regulation on Optimal Plant Size and Factor Shares," Journal of Law and Economics, University of Chicago Press, vol. 27(1), pages 1-28, April.
    4. Elie Appelbaum & Eliakim Katz, 2008. "Seeking Rents by Setting Rents: The Political Economy of Rent Seeking," Springer Books, in: Roger D. Congleton & Arye L. Hillman & Kai A. Konrad (ed.), 40 Years of Research on Rent Seeking 1, pages 555-569, Springer.
    5. Arye L. Hillman & Heinrich W. Ursprung, 2008. "Domestic Politics, Foreign Interests, and International Trade Policy," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 113-129, Springer.
    6. McGuire, Martin C., 1982. "Regulation, factor rewards, and international trade," Journal of Public Economics, Elsevier, vol. 17(3), pages 335-354, April.
    7. Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-985, December.
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    Cited by:

    1. Bommer, Rolf & Schulze, Günther G., 1994. "Economic integration and environmental policy: Does NAFTA increase pollution?," Discussion Papers, Series II 218, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    2. Finus, Michael & Rundshagen, Bianca, 1998. "Toward a Positive Theory of Coalition Formation and Endogenous Instrumental Choice in Global Pollution Control," Public Choice, Springer, vol. 96(1-2), pages 145-186, July.

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