Regional Aspects of Environmental Allocation

  • Horst Siebert


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.


Environmental Policy Regional Authority Shadow Price Marginal Abatement Cost Regional Aspect 
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  1. 1.
    For a survey of the problem, compare Siebert (1979b, 1979d, 1985).Google Scholar
  2. 2.
    We here analyze a static allocation problem and neglect that pollutants accumulate over time. Compare chapter 12 and for the regional context Gebauer (1982).Google Scholar
  3. 3.
    We are only interested in inner solutions with S~, S2! O. Formally, no-negativity constraints could be additionally introduced into the maximization problem of Appendix 12A.Google Scholar
  4. 4.
    Compare the Tiebout theorem (1956).Google Scholar
  5. 5.
    Introducing an additional restraint for instance by a reduction of grants from the federal government could transform the non-cooperative game into a cooperative game.Google Scholar
  6. 6.
    Interregional spillovers may be of an intertemporal nature. Pollutants transported into a region may accumulate there over time. The problem then has to be analyzed as a cooperative or non-cooperative differential game which shows the properties of a steady-state in a two-region system and the time paths of pollution in both regions towards the steady state (Gebauer 1982 ).Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 1992

Authors and Affiliations

  • Horst Siebert
    • 1
  1. 1.Kiel Institute of World EconomicsKiel 1Germany

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