IDEAS home Printed from https://ideas.repec.org/p/cdl/agrebk/qt6cs5h3fm.html
   My bibliography  Save this paper

The role of taxes and zoning in the effective control of pollution

Author

Listed:
  • Hochman, Oded
  • Rausser, Gordon C.

Abstract

Previous analysis of pollution presumes separation between pollutees and polluters. In the model developed here, all possible combinations of housing and industry locations are allowed. In the resulting world of nonconvexities and multiple local optimum, Pigouvian taxes are generally insufficient. Accordingly, our analysis considers a wide range of policy instruments extending from Pigouvian taxes, double taxes, to zoning regulations. The results demonstrate that the management of pollution requires the recognition of two separate regimes determined by the type of convexity or concavity of the pollution dispersion function. When this function is convex, the optimal solution requires no zoning of housing. When the dispersion function is concave in emissions, the optimal allocation implies zoning into industrial and residential zones and, in some circumstances, taxes equal to total damages. To achieve effective management under limited information regarding the pollution dispersion function, it is argued that zoning restrictions cab be determined by trial and error through observation of changes in land rents.

Suggested Citation

  • Hochman, Oded & Rausser, Gordon C., 1980. "The role of taxes and zoning in the effective control of pollution," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt6cs5h3fm, Department of Agricultural & Resource Economics, UC Berkeley.
    • Handle: RePEc:cdl:agrebk:qt6cs5h3fm
    as

    Download full text from publisher

    File URL: https://www.escholarship.org/uc/item/6cs5h3fm.pdf;origin=repeccitec
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dennis W. Carlton & Glenn C. Loury, 1980. "The Limitations of Pigouvian Taxes as a Long-Run Remedy for Externalities," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(3), pages 559-566.
    2. Hochman, Oded, 1982. "Clubs in an urban setting," Journal of Urban Economics, Elsevier, vol. 12(1), pages 85-101, July.
    3. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    4. Hochman, Oded, 1982. "Congestable local public goods in an urban setting," Journal of Urban Economics, Elsevier, vol. 11(3), pages 290-310, May.
    5. repec:bla:econom:v:38:y:1971:i:152:p:347-61 is not listed on IDEAS
    6. repec:bla:econom:v:39:y:1972:i:154:p:160-76 is not listed on IDEAS
    7. Henderson, J. V., 1977. "Externalities in a spatial context : The case of air pollution," Journal of Public Economics, Elsevier, vol. 7(1), pages 89-110, February.
    8. Hochman, Oded & Hochman, Eithan, 1980. "Regeneration, Public Goods, and Economic Growth," Econometrica, Econometric Society, vol. 48(5), pages 1233-1250, July.
    9. Strotz, Robert H. & Wright, Colin, 1975. "Spatial adaptation to urban air pollution," Journal of Urban Economics, Elsevier, vol. 2(3), pages 212-222, July.
    10. Hochman, Oded, 1981. "Land rents, optimal taxation and local fiscal independence in an economy with local public goods," Journal of Public Economics, Elsevier, vol. 15(1), pages 59-85, February.
    11. Page, Talbot & Ferejohn, John A, 1974. "Externalities as Commodities: Comment," American Economic Review, American Economic Association, vol. 64(3), pages 454-459, June.
    12. Gould, J R, 1977. "Total Conditions in the Analysis of External Effects," Economic Journal, Royal Economic Society, vol. 87(347), pages 558-564, September.
    13. Hochman, Oded & Ofek, Haim, 1979. "A theory of the behavior of municipal governments: The case of internalizing pollution externalities," Journal of Urban Economics, Elsevier, vol. 6(4), pages 416-431, October.
    14. Hochman, Oded, 1978. "A two sector model with several externalities and their effects on an urban setting," Journal of Urban Economics, Elsevier, vol. 5(2), pages 198-218, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arnott, Richard & Hochman, Oded & Rausser, Gordon C., 2008. "Pollution and land use: Optimum and decentralization," Journal of Urban Economics, Elsevier, vol. 64(2), pages 390-407, September.
    2. Oded Hochman, 1990. "Cities, Scale Economies, Local Goods and Local Governments," Urban Studies, Urban Studies Journal Limited, vol. 27(1), pages 45-65, February.
    3. Acocella Nicola & Di Bartolomeo Giovanni, 2013. "Population location, commuting and local public goods: A political economy approach," wp.comunite 0105, Department of Communication, University of Teramo.
    4. Dieter Schmidtchen & Jenny Helstroffer & Christian Koboldt, 2021. "Regulatory failure and the polluter pays principle: why regulatory impact assessment dominates the polluter pays principle," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(1), pages 109-144, January.
    5. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    6. Emanuela Randon, 2002. "L’analisi positiva dell’esternalità: rassegna della letteratura e nuovi spunti," Working Papers 58, University of Milano-Bicocca, Department of Economics, revised Jun 2002.
    7. Strokov, A. & Ternovsky, D. & Potashnikov, V. & Potapova, A., 2020. "Economical evaluation of externalities using partial equilibrium model," Journal of the New Economic Association, New Economic Association, vol. 48(4), pages 113-136.
    8. Ko, Il-Dong, 1988. "Issues in the control of stock externality problems with inflexible policy measures," ISU General Staff Papers 198801010800009859, Iowa State University, Department of Economics.
    9. Kox, H.L.M., 1991. "The 'non-polluter gets paid' principle for Third World commodity exports," Serie Research Memoranda 0028, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    10. Strandholm, John C. & Espínola-Arredondo, Ana & Munoz-Garcia, Felix, 2018. "Regulation, free-riding incentives, and investment in R&D with spillovers," Resource and Energy Economics, Elsevier, vol. 53(C), pages 133-146.
    11. Hochman, Oded, 2011. "Efficient agglomeration of spatial clubs," Journal of Urban Economics, Elsevier, vol. 69(1), pages 118-135, January.
    12. Fisher, Anthony C & Peterson, Frederick M, 1976. "The Environment in Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 14(1), pages 1-33, March.
    13. Ryosuke Okamoto, 2009. "The Optimal Provision Of Local Public Goods In A Metropolitan Area With Flexible Jurisdictional Boundaries," Journal of Regional Science, Wiley Blackwell, vol. 49(2), pages 349-359, May.
    14. Okamoto, Ryosuke, 2000. "The system of towns with spatial public goods," Regional Science and Urban Economics, Elsevier, vol. 30(6), pages 627-637, December.
    15. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659, Elsevier.
    16. Qiuyue Xia & Lu Li & Jie Dong & Bin Zhang, 2021. "Reduction Effect and Mechanism Analysis of Carbon Trading Policy on Carbon Emissions from Land Use," Sustainability, MDPI, vol. 13(17), pages 1-22, August.
    17. Frans P. Vries & Nick Hanley, 2016. "Incentive-Based Policy Design for Pollution Control and Biodiversity Conservation: A Review," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(4), pages 687-702, April.
    18. Usher, Dan, 2001. "Personal goods, efficiency and the law," European Journal of Political Economy, Elsevier, vol. 17(4), pages 673-703, November.
    19. George Tridimas & Stanley L. Winer, 2018. "On the Definition and Nature of Fiscal Coercion," Carleton Economic Papers 18-09, Carleton University, Department of Economics.
    20. Mario Jametti & Thomas von Ungern-Sternberg, 2005. "Assessing the Efficiency of an Insurance Provider—A Measurement Error Approach," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 30(1), pages 15-34, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cdl:agrebk:qt6cs5h3fm. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lisa Schiff (email available below). General contact details of provider: https://edirc.repec.org/data/dabrkus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.