Environmental policy and wage setting
DOI:
https://doi.org/10.7201/earn.2004.07.05Keywords:
Monopoly union model, emission standardsAbstract
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.Downloads
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