Environmental policy and wage setting

Authors

  • María Luz Campo Universidad del País Vasco (UPV-EHU)

DOI:

https://doi.org/10.7201/earn.2004.07.05

Keywords:

Monopoly union model, emission standards

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.

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Author Biography

María Luz Campo, Universidad del País Vasco (UPV-EHU)

Facultad de Ciencias Económicas y Empresariales
Dpto. de Fundamentos del Análisis Económico I

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Published

2011-10-21

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