Chapter 3 Spatial aspects of environmental economics
Environmental problems have a spatial dimension because environmental media are defined over space. Environmental quality at one point in space is influenced by the spatial transfer of pollutants and the interdependence of spatial points via economic mechanisms. This chapter discusses the problem of environmental allocation in space that consists in analyzing environmental interactions occurring in space; in determining spatial patterns of environmental use; in specifying the impact of economic activities on environmental allocation in space; and in discussing the influence of alternative institutional settings on the spatial dimensions of the environment. The equalization of prices for emissions is established under specific conditions such as the linear-homogeneity of overall sectorial production functions in which the production and abatement activities are captured. In a national allocation context a division of labor in space tends to imply a difference in regional environmental qualities even if the emission price is identical among regions. Environmental abundance is one additional factor explaining international specialization; comparative environmental advantage has to rule in the long run similarly as advantages with respect to labor, capital and land.
Year of publication: |
1985
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Authors: | Siebert, Horst |
Published in: |
Handbook of natural resource and energy economics : volume 1. - Amsterdam : North-Holland, ISBN 978-0-444-87644-7. - 1985, p. 125-164
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