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Public versus personal welfare: an aspect of environmental policymaking in developing countries

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  • Batabyal, Amitrajeet

Abstract

In this paper, we shed light on the nature of the interaction between an environmental authority (EA) and the polluting sector in a developing country (DC) when there is uncertainty about the relative weight that this EA places on public versus its own welfare. Within the context of this general issue, we answer three specific questions for any arbitrary time period t. First, we determine the expected level of pollution as well as the actual pollution in the polluting sector. Second, we compute the mean social loss arising in part from the uncertainty about the relative weight that the EA places on public versus its own welfare. Finally, we solve for the optimal value of the parameter which measures the relative weight the EA places on public versus its own welfare.

Suggested Citation

  • Batabyal, Amitrajeet, 2007. "Public versus personal welfare: an aspect of environmental policymaking in developing countries," MPRA Paper 71923, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:71923
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    References listed on IDEAS

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    1. Amitrajeet A. Batabyal, 2008. "Environmental Policy In Developing Countries: A Dynamic Analysis," World Scientific Book Chapters, in: Dynamic And Stochastic Approaches To The Environment And Economic Development, chapter 9, pages 145-164, World Scientific Publishing Co. Pte. Ltd..
    2. Barro, Robert J. & Gordon, David B., 1983. "Rules, discretion and reputation in a model of monetary policy," Journal of Monetary Economics, Elsevier, vol. 12(1), pages 101-121.
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    5. Amitrajeet A. Batabyal & Hamid Beladi, 2008. "A Dynamic Analysis Of Protection And Environmental Policy In A Small Trading Developing Country," World Scientific Book Chapters, in: Dynamic And Stochastic Approaches To The Environment And Economic Development, chapter 11, pages 189-212, World Scientific Publishing Co. Pte. Ltd..
    6. 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..
    7. Amitrajeet A. Batabyal & Hamid Beladi, 2008. "Aspects Of The Theory Of Environmental Policy In Developing Countries," World Scientific Book Chapters, in: Dynamic And Stochastic Approaches To The Environment And Economic Development, chapter 12, pages 213-226, World Scientific Publishing Co. Pte. Ltd..
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    More about this item

    Keywords

    Developing Country; Environmental Authority; Game; Policy; Uncertainty;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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