Aspects of the theory of environmental policy in developing countries

We study two issues relating to the conduct of environmental policy in developing countries (DCs). First, when faced with a self-financing constraint, should an environmental authority (EA) raise/lower pollution taxes over time or should it run a deficit/surplus? Second, given recent findings about...

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Main Authors: Amitrajeet A. Batabyal, Hamid Beladi
Format: Article
Language:English
Published: Wiley 2002-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1080/10260220290013516
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author Amitrajeet A. Batabyal
Hamid Beladi
author_facet Amitrajeet A. Batabyal
Hamid Beladi
author_sort Amitrajeet A. Batabyal
collection DOAJ
description We study two issues relating to the conduct of environmental policy in developing countries (DCs). First, when faced with a self-financing constraint, should an environmental authority (EA) raise/lower pollution taxes over time or should it run a deficit/surplus? Second, given recent findings about the dynamic inconsistency of optimal environmental policy, should an EA make its preferences about the relative benefits of environmental protection versus production public, or should it keep its preferences private? Our analysis reveals that when faced with a self-financing constraint, it is optimal for the EA to run a deficit/surplus. Second, social losses are lower when this EA keeps its preferences private.
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spelling doaj-art-439aa38ec39e41c5b4271e81de77644a2025-08-20T03:36:01ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2002-01-0171535810.1080/10260220290013516Aspects of the theory of environmental policy in developing countriesAmitrajeet A. Batabyal0Hamid Beladi1Department of Economics, Rochester Institute of Technology, 92 Lomb Memorial Drive, Rochester, NY 14623-5604, USADepartment of Economics, Rochester Institute of Technology, 92 Lomb Memorial Drive, Rochester, NY 14623-5604, USAWe study two issues relating to the conduct of environmental policy in developing countries (DCs). First, when faced with a self-financing constraint, should an environmental authority (EA) raise/lower pollution taxes over time or should it run a deficit/surplus? Second, given recent findings about the dynamic inconsistency of optimal environmental policy, should an EA make its preferences about the relative benefits of environmental protection versus production public, or should it keep its preferences private? Our analysis reveals that when faced with a self-financing constraint, it is optimal for the EA to run a deficit/surplus. Second, social losses are lower when this EA keeps its preferences private.http://dx.doi.org/10.1080/10260220290013516
spellingShingle Amitrajeet A. Batabyal
Hamid Beladi
Aspects of the theory of environmental policy in developing countries
Discrete Dynamics in Nature and Society
title Aspects of the theory of environmental policy in developing countries
title_full Aspects of the theory of environmental policy in developing countries
title_fullStr Aspects of the theory of environmental policy in developing countries
title_full_unstemmed Aspects of the theory of environmental policy in developing countries
title_short Aspects of the theory of environmental policy in developing countries
title_sort aspects of the theory of environmental policy in developing countries
url http://dx.doi.org/10.1080/10260220290013516
work_keys_str_mv AT amitrajeetabatabyal aspectsofthetheoryofenvironmentalpolicyindevelopingcountries
AT hamidbeladi aspectsofthetheoryofenvironmentalpolicyindevelopingcountries