Regional Aspects of Environmental Allocation

Abstract

In contrast to global or international environmental systems, regional media relate to the spatial subsystems of a nation such as river systems, groundwater systems, or air regions. Regional media may also cut across national political boundaries, as occurs in the upper Rhine Valley where France, Germany, and Switzerland are linked. In this chapter we present a spatial-allocation model for a two-region system where pollutants are transmitted via environmental media from one region to another. The implications of the allocation model are derived and explained. The basic result is that emission taxes have to be differentiated according to regional conditions. The institutional problem of whether environmental allocation should be undertaken by national or regional authorities is discussed. Finally, we look into some practical problems such as interregional equity requirements and the relationship between regional environmental policy and regional planning.