Stricter environmental regulations are often opposed on the grounds that they will alter equilibrium capital flows. Empirical evidence in this area remains largely unresolved, mainly due to the quite disparate results found in the literature. This paper takes a positive look at the relationship...

The literature on the effects of environmental policy on the location behaviour of firms has so far failed to draw any firm conclusions. Different studies have shown that the effects may be zero, negative or positive. They always tend to be small. This paper argues that methodological issues...

In the environmental federalism literature it is argued that the optimal level of environmental quality varies widely across jurisdictions and that welfare losses associated with enforcing a harmonised uniform standard is quite large. Greater leeway for tailoring environmental standards to local...