The paper investigates the spatial patterns of industrial location and environmental pollution in a new-economic-geography model. Factors of production and their owners are mobile, but factor owners are not required to live in the region in which their factors are employed. Under laisser-faire,...

The introduction of the U.S. SO2 allowance-trading program to address the threat of acid rain as part of the Clean Air Act Amendments of 1990 is a landmark event in the history of environmental regulation. The program was a great success by almost all measures. This paper, which draws upon a...

We develop a simple model of managing a system subject to pollution damage under risk of an abrupt and random jump in the damage coefficient. The model allows the full dynamic characterization of the optimal emission policies under uncertainty. The results, that imply prudent behavior due to...

A number of empirical studies have been carried out to assess the impact of sustainable development assistance (SDA) and aid on environmental quality in poor countries, but these studies have been characterized by weak theoretical anchor. It is against this background that this paper provides a...

This essay revisits the question of instrument choice for the regulation of externalities in the context of climate change. The central point is that the Pigouvian prescription to equate marginal control costs with the expected marginal benefits of damage reduction should guide the design of...

Legal challenges and transitions of political power cause the future of regulatory policies to be uncertain. In this article, I investigate how uncertainty about environmental policy affects investment and emissions at coal-fired power plants. I exploit a legal challenge to the Clean Air...

Our paper examined the pollution leakage by the environmental regulation applied in 2+26 cities which are Beijing and surrounding Beijing area. Based on daily emission data, we empirically find that leakage is possibly happened among the firms in the same industry. We also use the example of...

Mandatory Environmental Information Disclosure (EID) programs are touted as effective supplements to traditional policy instruments in most OECD countries. However, the Chinese national EID program, which was launched in 2008, is found to be ineffective for the urban environment. Though former...

In most countries, environmental regulation focuses on local pollution, which causes damages near the emission source, while regulation on global pollutants such as greenhouse gases (GHG) has been slow. Theoretically, local and global pollutants can either be substitutes or complements in...

For much of the industrialized world, pollution from manufacturing has been falling despite increased output. In this paper, we provide the first estimates of the extent to which environmental regulations have contributed to this “clean-up” of manufacturing by causing: (i) the adoption of...