Fiscal Policy and Environmental Welfare: Modelling Interjurisdictional Competition

In this innovative book the author examines the link between environmental, trade and industrial policies within an interregional setting. He models how regional governments, using tax rates on real capital and pollutant emissions, determine policies to favour their residents in terms of the provision of public goods and reduction in environmental degradation.

Regions or countries engage in competition for mobile capital in a world where production causes pollution and tax revenues are requi...