Skip to main content
Log in

New Economic Theories

  • Published:
Environmental and Resource Economics Aims and scope Submit manuscript

Abstract

This paper analyses some of the most important spillovers of recent developments of economic theory into environmental economics. Attention is given to the anlaysis of sustainable economic development paths, where endogenous growth models are used; the implications of environmental dumping and more generally of policies concerning global environmental issues, where new trade theories are very useful; and, the effectiveness of environmental policy instruments when markets are imperfectly competitive, where industrial organisation theory is employed. The paper does not only note recent developments in environmental economics, but also relates these to the previous environmental economics literature. Thus, it can be assessed whether new results actually improve our knowledge of crucial economic and environmental issues.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Barrett, S. (1994), ‘Strategic Environmental Policy and International Trade’, Journal of Public Economics 54, 325–338.

    Article  Google Scholar 

  • Baumol, W. and W. Oates (1988), The Theory of Environmental Policy. Cambridge: Cambridge University Press.

    Google Scholar 

  • Beltratti, A. (1996), Sustainability of Growth: Reflections on Economic Models. Dordrecht: Kluwer Academic Publishers.

    Google Scholar 

  • Beltratti, A., G. Chichilniski and G. Heal (1993), ‘Sustainable Growth and the Green Golden Rule’. FEEM Discussion Paper, 61.93, Milan.

  • Beltratti, A. (1997), ‘Growth with Natural and Environmental Resources’, in C. Carraro and D. Siniscalco, eds., New Directions in the Economic Theory of the Environment. Cambridge: Cambridge University Press.

    Google Scholar 

  • Beckman, M. and J. Thisse (1986), ‘The Location of Production Activities’, in P. Nijkamp, ed., Handbook of Regional and Urban Economics. Amsterdam: North-Holland.

    Google Scholar 

  • Boetti, M., M. Botteon, C. Carraro and A. Soubeyran (1997), ‘On the Effects of Industrial, Trade and Environmental Policies on the Location Choices of Firms’, Revue dEconomie Industrielle, forthcoming.

  • Bovenberg, L. and S. Smulders (1995), ‘Environmental Quality and Pollution Augmenting Technological Change in a Two Sector Endogenous Growth Model’, Journal of Public Economics 57, 369–391.

    Article  Google Scholar 

  • Brander, J. and B. Spencer (1985), ‘Export Subsidies and International Market Share Rivalry’, Journal of International Economics 18, 83–100.

    Article  Google Scholar 

  • Buchanan, J. M. (1969), ‘External Diseconomies, Corrective Taxes and Market Structure’, American Economic Review 59, 174–177.

    Google Scholar 

  • Carraro, C. (1997) ‘Induced Technical Change in Environmental Models: Theoretical Results and Implementations’, presented at the International Workshop on ‘Induced Technological Change and the Environment’; IIASA, 26–27 June 1997.

  • Carraro, C. and D. Siniscalco (1997), New Directions in the Economic Theory of the Environment. Cambridge: Cambridge University Press.

    Google Scholar 

  • Carraro, C. and A. Soubeyran (1996a), ‘Environmental Taxation, Market Share and Profits in Oligopoly’, in Carraro, C., Y. Katsoulacos and A. Xepapadeas, eds., Environmental Policy and Market Structure. Dordrecht: Kluwer Academic Publishers.

    Google Scholar 

  • Carraro, C. and A. Soubeyran (1996b), ‘Environmental Feedbacks and Optimal Taxation in Oligopoly’, in A. Xepapadeas, ed., Economic Policy for the Environment and Natural Resources. Cheltenham: Edward Elgar.

    Google Scholar 

  • Carraro, C. and A. Soubeyran (1996c), ‘Environmental Policy and the Choice of Production Technology’, in Carraro, C., Y. Katsoulacos and A. Xepapadeas, eds., Environmental Policy and Market Structure. Dordrecht: Kluwer Academic Publishers.

    Google Scholar 

  • Carraro, C. and A. Soubeyran (1997), ‘R&D Cooperation, Innovation Spillovers and Firm Location in a Model of Environmental Policy’, in E. Petrakis, E. Sartzetakis and A. Xepapadeas, eds., Environmental Regulation and Market Structure. Cheltenham: Edward Elgar.

    Google Scholar 

  • Carraro, C. and G. Topa (1994), ‘Should Environmental Innovation Policy Be Internationally Coordinated’, in C. Carraro, ed., Trade, Innovation, Environment. Dordrecht: Kluwer Academic Publishers.

    Google Scholar 

  • Carraro, C. and G. Topa (1995), ‘Environmental Taxation and Innovation’, in C. Carraro and J. Filar, eds., Control and Game-Theoretic Models of the Environment. New York: Birckauser.

    Google Scholar 

  • Conrad, K. (1993), ‘Taxes and Subsidies for Pollution Intensive Industries as Trade Policy’, Journal of Environmental Economics and Management 25, 121–135.

    Article  Google Scholar 

  • Copeland, B. (1994), ‘International Trade and the Environment: Policy Reform in a Polluted Small Open Economy’, Journal of Environmental Economics and Management 26, 44–65.

    Article  Google Scholar 

  • DArge, R. C. and K. C. Kogiku (1973), ‘Economic Growth and the Environment’, Review of Economic Studies 40, 61–77.

    Article  Google Scholar 

  • Ethier, W. (1986), ‘The Multinational Firm’, Quarterly Journal of Economics 101, 805–833.

    Article  Google Scholar 

  • Gradus, R. and S. Smulders (1993), ‘The Trade-off Between Environmental Care and Long-Term Growth – Pollution in Three Prototype Growth Models’, Journal of Economcis 58, 25–51.

    Google Scholar 

  • Grossman, G. and E. Helpman (1991), Innovation and Growth. Cambridge: MIT Press.

    Google Scholar 

  • Heal, G. (1982), ‘The Use of Common Property Resources’, in V. K. Smith and J. V. Krutilla, eds., Explorations in Natural Resource Economics. Baltimore: John Hopkins University Press.

    Google Scholar 

  • Heal, G. (1995), ‘Interpreting Sustainability’, FEEM Discussion Paper 1.95, Milan.

  • Helpman, E. (1985), ‘Multinational Corporations and Trade Structure’, Review of Economic Studies 52, 443–458.

    Article  Google Scholar 

  • Helpman, E. and P. Krugman (1985), Market Structure and Foreign Trade. Cambridge: MIT Press.

    Google Scholar 

  • Helpman, E. and P. Krugman (1989), Trade Policy and Market Structure. Cambridge: MIT Press.

    Google Scholar 

  • Hoel, M. (1994), ‘Environmental Policy as a Game between Governments when Plant Locations are Endogenous’, presented at the CEPR workshop on ‘Environmental Policy, International Agreements and International Trade’, London, 11–12 November 1994.

  • Hung, V., P. Chang and K. Blackburn (1994), ‘Endogenous Growth, Environment and R&D’, in C. Carraro, ed., Trade, Innovation, Environment. Dordrecht: Kluwer Academic Publishers.

    Google Scholar 

  • Jung, C., K. Krutilla and R. Boyd (1996), ‘Incentives for Advanced Pollution Abatement Technology at the Industry Level: An Evaluation of Policy Alternatives’, Journal of Environmental Economics and Management 30, 95–111.

    Article  Google Scholar 

  • Kamien, M. I. and N. L. Schwartz (1982), ‘The Role of Common Property Resources in Optimal Planning odes with Exhaustible Resources’, in V. K. Smith and J. V. Krutilla, eds., Explorations in Natural Resource Economics. Baltimore: John Hopkins University Press.

    Google Scholar 

  • Katsoulacos, Y. and A. Xepapadeas (1994), ‘Pigouvian Taxes under Oligopoly’, mimeo. Athens University.

  • Katsoulacos, Y. and A. Xepapadeas (1995), ‘Environmental Policy under Oligopoly with Endogenous Market Structure’, Scandinavian Journal of Economics 97, 411–420.

    Google Scholar 

  • Katsoulacos, Y. and A. Xepapadeas (1996a), ‘Emission Taxes and Market Structure’, in Carraro, C., Y. Katsoulacos and A. Xepapadeas, eds., Environmental Policy and Market Structure. Dordrecht: Kluwer Academic Publishers.

    Google Scholar 

  • Katsoulacos, Y. and A. Xepapadeas (1996b), ‘Environmental Innovation, Spillovers and Optimal Policy Rules’, in Carraro, C., Y. Katsoulacos and A. Xepapadeas, eds., Environmental Policy and Market Structure. Dordrecht: Kluwer Academic Publishers.

    Google Scholar 

  • Krugman, P. (1991), Geography and International Trade. Cambridge: MIT Press.

    Google Scholar 

  • Laffont, J. J. (1994), ‘Regulation of Pollution with Asymmetric Information’, in C. Dosi and T. Tomasi, eds., Non Point Source Pollution Regulation: Issues and Analysis. Dordrecht: Kluwer Academic Publishers.

    Google Scholar 

  • Laffont, J. J. and J. Tirole (1996), ‘A Note on Environmental Innovation’, Journal of Public Economics.

  • Levinson, J. (1996), ‘Environmental Policy and Plant Location’, Journal of Public Economics 62, 1–18.

    Article  Google Scholar 

  • Lucas, R. (1988), ‘On the Mechanics of Economic Development’, Journal of Monetary Economics 22, 3–42.

    Article  Google Scholar 

  • Malueg, D. A. (1990), ‘Welfare Consequences of Emission Trading Credit Programs’, Journal of Environmental Economics and Management 18, 66–77.

    Article  Google Scholar 

  • Markusen, J. (1984), ‘Multinationals, Multi-Plant Economies and the Gains from Trade’, Journal of International Economics 16, 205–226.

    Article  Google Scholar 

  • Markusen, J. (1996), ‘The Economic Theory of Trade and Firm Location’, mimeo. FEEM, Milan.

    Google Scholar 

  • Markusen, J. R., E. R. Morey and N. Olewiler (1993), ‘Environmental Policy when Market Structure and Plant Locations are Endogenous’, Journal of Environmental Economics and Management 24, 69–86.

    Article  Google Scholar 

  • Markusen, J. R., E. R. Morey and N. Olewiler (1995), ‘Competition in Regional Environmental Policies with Endogenous Plant Location Decisions’, Journal of Public Economics 56, 55–77.

    Article  Google Scholar 

  • Michel, P. (1993), ‘Pollution and Growth towards the Ecological Paradise’, FEEM Discussion Paper 80.93, Milan.

  • Michel, P. and G. Rotillon (1992). ‘Pollution Disutility and Endogenous Growth’, mimeo. University of Paris I.

  • Misiolek, S. W. (1980), ‘Effluent Taxation in Monopoly Markets’, Journal of Environmental Economics and Management 7, 103–107.

    Article  Google Scholar 

  • Motta, M. and J. Thisse (1994), ‘Does Environmental Dumping Lead to Delocation?’ European Economic Review 38, 555–564.

    Article  Google Scholar 

  • Musu. I. (1995), ‘Transitional Dynamics to Optimal Sustainable Growth’, FEEM Discussion Paper 50.95, Milan.

  • Oates, W. E. and D. L. Strassman (1984), ‘Effluent Fees and Market Structure’, Journal of Public Economics 24, 29–46.

    Article  Google Scholar 

  • Porter, M. (1991), ‘America's Green Strategy’, Scientific American, 168.

  • Rauscher, M. (1994), ‘On Ecological Dumping’, Oxford Economic Papers 46, 822–840.

    Google Scholar 

  • Rauscher, M. (1995), ‘Environmental Regulation and the Location of Polluting Industries’, International Tax and Public Finance 2, 229–244.

    Article  Google Scholar 

  • Rauscher, M. (1997), ‘Environmental Regulation and International Capital Allocation’, in C. Carraro and D. Siniscalco, eds., New Directions in the Economic Theory of the Environment. Cambridge: Cambridge University Press.

    Google Scholar 

  • Reinganum, J. F. (1989), ‘The Timing of Innovation: Research, Development and Diffusion’, in R. Schmalensee and R. D. Willig, eds., Handbook of Industrial Organisation. Amsterdam: North-Holland.

    Google Scholar 

  • Requate, T. (1995), ‘Incentives to Adopt New Technologies under Different Pollution-Control Policies’, International Tax and Public Finance 2, 295–317.

    Article  Google Scholar 

  • Roberts, M. J. and M. Spencer (1976), ‘Effluent Charges and Licenses under Uncertainty’, Journal of Public Economics 5, 193–208.

    Article  Google Scholar 

  • Romer, P. (1994), ‘The Origins of Endogenous Growth’, Journal of Economic Perspectives 8, 5–22.

    Google Scholar 

  • Sala i Martin, X. (1990), ‘Lectures Notes on Economic Growth’, NBER Working Papers 3563 and 3564, Cambridge.

  • Siebert, H. (1985), ‘Spatial Aspects of Environmental Economics’, in A. V. Kneese and J. L. Sweeney, eds., Handbook of Natural Resources and Environmental Economics. Amsterdam: North-Holland, pp. 125–164.

    Google Scholar 

  • Ulph, A. (1994), ‘Environmental Policy, Plant Location, and Government Protection’, in C. Carraro, ed., Trade, Innovation, Environment. Dordrecht: Kluwer Academic Publishers.

    Google Scholar 

  • Ulph, A. (1997), ‘Environmental Policy, Strategic Trade and Innovation’, in C. Carraro and D. Siniscalco, eds., New Directions in the Economic Theory of the Environment. Cambridge: Cambridge University Press.

    Google Scholar 

  • Ulph, D. (1994), ‘Strategic Innovation and Strategic Environmental Policy’, in C. Carraro, ed., Trade, Innovation, Environment. Dordrecht: Kluwer Academic Publishers.

    Google Scholar 

  • Ulph, D. (1997), ‘Environmental Policy and Technological Innovation’, in C. Carraro and D. Siniscalco, eds., New Directions in the Economic Theory of the Environment. Cambridge: Cambridge University Press.

    Google Scholar 

  • Ulph, A. and D. Ulph (1996), ‘Trade, Strategic Innovation and Strategic Environmental Policy – A General Analysis’, in C. Carraro, Y. Katsoulacos and A. Xepapadeas, eds., Environmental Policy and Market Structure. Dordrecht: Kluwer Academic Publishers.

    Google Scholar 

  • Ulph, A. and L. Valentini (1996), ‘Plant Location and Strategic Environmental Policy with Intersectoral Linkages’, presented at the CEPR workshop on ‘Environmental Policy, International Agreements and International Trade’, London, 11–12 November 1994.

  • Van Egteren, H. and M. Weber (1996), ‘Marketable Permits, Market Power and Cheating’, Journal of Environmental Economics and Management 30, 161–173.

    Article  Google Scholar 

  • Venables, A. (1996), ‘Equilibrium Location of Vertically Integrated Industries’, International Economic Review 37, 341–359.

    Google Scholar 

  • Verdier, T. (1995), ‘Environmental Pollution and Endogenous Growth: a Comparison between Emission Taxes and Technological Standards’, in C. Carraro and J. Filar, eds., Control and Game-Theoretic Models of the Environment. New York: Birckauser.

    Google Scholar 

  • Von der Fehr, N. (1993), ‘Tradable Emission Rights and Strategic Interactions’, Environmental and Resource Economics 3, 129–151.

    Article  Google Scholar 

  • Xepapadeas, A. (1997a), ‘Economic Development and Environmental Traps’, Structural Change and Economic Dynamics, forthcoming.

  • Xepapadeas, A. (1997b), Advanced Principles in Environmental Policy. Cheltenham: Edward Elgar.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Carraro, C. New Economic Theories. Environ Resource Econ 11, 365–381 (1998). https://doi.org/10.1023/A:1008204826571

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1008204826571

Navigation