Tanguay, G.A.; Marceau, N. - Groupe de recherche en économie de l'énergie, de … - 1998
The main result of this paper is that when two asymmetric regions compete in pollution taxes to attract a polluting … that incomplete information on regions' pollution costs may lead to a bias towards location in a region that does not …'' marginal cost of pollution. Also, this bias tends to disappear with large discrepancies in production costs. …