Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Geopolitics and the Environment Location: B004 Session Chair: Zhi Li, Xiamen University | |
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Environmental policy and productivity in an economic geography model University of Murcia, Spain This paper develops a New Economic Geography model of two regions with polluting firms subject to regional abatement policies. Pollution accumulates in the local environment and decreases the welfare of the population. Firms exhibit different levels of productivity, with the more productive firms emitting less emissions per unit of output. Only the more productive firms can afford the fixed costs of entering the export market, while the less productive ones produce only for domestic consumers. Environmental policy has two opposing welfare effects: it reduces nominal wages and increases environmental quality. Environmental policy also raises production costs, which induces some firms to stop exporting and pushes less productive firms out of the market. This paper investigates the effects of environmental policy on the geolocation of the most productive firms and its welfare consequences. | |