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Should Large Developing Countries Pursue Environmental Policy Unilaterally?

Author

Listed:
  • Amitrajeet A. Batabyal

    (University of California)

Abstract

In this paper, we ask the following question. Why is it that despite the universal recognition of the need for global environmental protection, developing countries have been lax in instituting stringent environmental regulations? Addressing this question from an economic perspective, we study two general cases. In the first case, production in the export sector of large developing country, and in the second case, production in the import sector of the same country cause pollution. We show that there are plausible theoretical circumstances in which a large developing country can be worse off if it chooses to implement environmental policy on its own. The empirical dimension of this result is stressed and the key parameters- such as elasticities and marginal propensities to consume- which are germane to any policy discussion regarding this issue are identified. We conclude by discussing the implications of our results for (a) the specific issue of the courses of action available to large developing countries and (b) the more general question of global environmental protection.

Suggested Citation

  • Amitrajeet A. Batabyal, 1993. "Should Large Developing Countries Pursue Environmental Policy Unilaterally?," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 28(2), pages 191-202, July.
    • Handle: RePEc:dse:indecr:v:28:y:1993:i:2:p:191-202
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    Cited by:

    1. Amitrajeet A. Batabyal & Dug Man Lee, 2008. "Dynamic Environmental Policy In Developing Countries With A Dual Economy," World Scientific Book Chapters, in: Dynamic And Stochastic Approaches To The Environment And Economic Development, chapter 10, pages 165-187, World Scientific Publishing Co. Pte. Ltd..
    2. Amitrajeet Batabyal, 1994. "On the possibility of attaining environmental and trade objectives simultaneously," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 4(6), pages 545-553, December.
    3. Batabyal, Amitrajeet A., 1995. "Development, trade, and the environment: which way now?," Ecological Economics, Elsevier, vol. 13(2), pages 83-88, May.

    More about this item

    JEL classification:

    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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