Environmental policy and wage setting

María Luz Campo

Abstract

This paper studies the interaction between the performance of firms and unions and the environmental policy chosen by governments when there is a negative environmental externality from production of a good which only affects the country where the firm is located. I assume that governments choose an upper limit on emissions, unions choose the wage rates and firms choose the employment level. Specifically, I analyze the effect that unionized labor markets have on environmental policy.

Keywords

Monopoly union model; emission standards

Subject classification

J30, J51, Q28.

Full Text:

PDF

References

Bárcena-Ruiz, J.C. and Garzón, M.B. (2003). «Strategic Environmental Standards, Wage Incomes and the Location of Polluting Firms». Environmental and Resource Economics, 24(2):121-139. https://doi.org/10.1023/A:1022837008712

Brander, J.A. and Spencer, B. (1988). «Unionized Oligopoly and International Trade Policy». Journal of International Economics, 24:217-234. https://doi.org/10.1016/0022-1996(88)90035-9

Brown, J.N. and Ashenfelter, O. (1986). «Testing the Efficiency of Employment Contracts». Journal of Political Economy, 94:540-587. https://doi.org/10.1086/261399

Bovenberg A.L. and Van der Ploeg F. (1998). «Tax Reform, Structural Unemployment and the Environment». Scandinavian Journal of Economics, 100(3):593-610. https://doi.org/10.1111/1467-9442.00124

Bughin, J. and Vannini, S. (1995). «Strategic Direct Investment under Unionized Oligopoly». International Journal of Industrial Organization, 13:127-145. https://doi.org/10.1016/0167-7187(94)00447-A

Carraro, C., Galeotti, M. and Gallo, M. (1996). «Environmental Taxation and Unemployment: Some evidence on the

Double Dividend Hypothesis in Europe». Journal of Public Economics, 62:141-181.

De Fraja, G. (1993). «Unions and Wages in Public and Private Firms: A Game-Theoretic Analysis». Oxford Economic Papers, 45:457-469. https://doi.org/10.1093/oxfordjournals.oep.a042102

Dertouzos, J.N. and Pencavel, J.M. (1981) «Wage and Employment Determination Under Trade Unionism: The International Typographical Union». Journal of Political Economy, 89:1162-1181. https://doi.org/10.1086/261027

Dobson, P. (1994). «Multifirm Unions and the Incentive to Adopt Pattern Bargaining in Oligopoly». European Economic Review, 38:87-100. https://doi.org/10.1016/0014-2921(94)90007-8

Falk, I. and Mendelsohn, R. (1993). «The Economics of Controlling Stock Pollutants: An Efficient Strategy for Greenhouse Gases». Journal of Environmental Economics and Management, 25:75-88. https://doi.org/10.1006/jeem.1993.1027

Fredriksson, P.G. and Gaston, N. (1999). «The “Greening” of Trade Unions and the Demand for Eco-taxes». European Journal of Political Economics, 15:663-686. https://doi.org/10.1016/S0176-2680(99)00031-2

Hoel, M. (1997a). «Coordination of Environmental Policy for Transboundary Environmental Problems». Journal of Public Economics, 66:199-224. https://doi.org/10.1016/S0047-2727(97)00042-X

Hoel, M. (1997b). «Environmental Policy with Endogenous Plant Locations». Scandinavian Journal of Economics, 99 (2):241-259. https://doi.org/10.1111/1467-9442.00061

Hoel, M. (1998). «Emission Taxes versus Other Environmental Policies». Scandinavian Journal of Economics, 100 (1):79-104. https://doi.org/10.1111/1467-9442.00091

Horn, H. and Wolinsky, A. (1988). «Bilateral Monopolies and Incentives for Merger». RAND Journal of Economics, 19(3):408-419. https://doi.org/10.2307/2555664

Malcomson, J.M. (1987). «Trade Union Labor Contracts». European Economic Review, 31:139-148. https://doi.org/10.1016/0014-2921(87)90025-0

Markusen, J.R. (1997). «Costly Pollution Abatement, Competitiveness and Plant Location Decisions». Resource and Energy Economics, 19:299-320. https://doi.org/10.1016/S0928-7655(97)00014-6

Mezzetti, C. and Dinopoulos, E. (1991). «Domestic Unionization and Import Competition». Journal of International Economics, 31 79-100. https://doi.org/10.1016/0022-1996(91)90057-D

Naylor, R. (1998). «International Trade and Economic Integration when Labour Markets are Generally Unionised». European Economic Review, 42:1251-1267. https://doi.org/10.1016/S0014-2921(97)00075-5

Oswald, A.J. and Turnbull, P.J. (1985). «Pay and Employment Determination in Britain: What Are Labour». Oxford Review of Economic Policy, 1 (2):80-97. https://doi.org/10.1093/oxrep/1.2.80

Ulph, A. (1996). «Environmental Policy and International Trade when Governments and Producers Act Strategically». Journal of Environmental Economics and Management, 30:265-281. https://doi.org/10.1006/jeem.1996.0018

Ulph, A. (2000). «Harmonization and Optimal Environmental Policy in a Federal System with Asymmetric Information». Journal of Environmental Economics and Management, 39:224-241. https://doi.org/10.1006/jeem.1999.1098

Van Der Ploeg, F. and De Zeeuw, A.J. (1992). «International Aspects of Pollution Control». Environmental and Resource Economics, 2:117-139. https://doi.org/10.1007/BF00338239

Abstract Views

252
Metrics Loading ...

Metrics powered by PLOS ALM

Refbacks

  • There are currently no refbacks.




 Universitat Politècnica de València

e-ISSN: 2174-7350   ISSN: 1578-0732   https://doi.org/10.4995/earn