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Environmental Migration and Capital Mobility

Author

Listed:
  • Chi-Chur Chao

    (CUHK - The Chinese University of Hong Kong [Hong Kong])

  • Shan Mong
  • Jean-Pierre Laffargue

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Eden S. H. Yu

Abstract

Based on utility equalization, this paper considers a developing economy with labor migration. Pollution and capital taxes are imposed on producers in the polluted sector. The optimal policy combinations of capital taxes and pollution taxes for the host economy are examined. A zero capital tax is required for increasing mobility of capital to raise real GDP, while a larger than Pigovian pollution tax is needed for enhancing environmental amenities. The impacts on those two optimal tax rates are examined theoretically and numerically if foreign countries adopt higher environmental standards or if foreign countries impose tax credits on foreign investments.

Suggested Citation

  • Chi-Chur Chao & Shan Mong & Jean-Pierre Laffargue & Eden S. H. Yu, 2016. "Environmental Migration and Capital Mobility," Post-Print hal-01450763, HAL.
    • Handle: RePEc:hal:journl:hal-01450763
    as

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    Cited by:

    1. Xiang Li & Shuang Xu & Yecui Hu, 2020. "Understanding the Rural Livelihood Stability System: The Eco-Migration in Huanjiang County, China," Sustainability, MDPI, vol. 12(16), pages 1-18, August.
    2. Lucken, Emma & Trapenberg Frick, Karen & Shaheen, Susan, 2019. "“Three Ps in a MOD:” Role for mobility on demand (MOD) public-private partnerships in public transit provision," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt2k2550ct, Institute of Transportation Studies, UC Berkeley.

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