2000
DOI: 10.1111/0022-4146.00183
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Regulatory Federalism and Environmental Protection in the United States

Abstract: In this paper we address two aspects of regulatory federalism in U.S. environmental policy. First, we suggest that environmental quality in U.S. states responds positively to increases in income. Second, we provide evidence that environmental quality did not decline when President Reagan's policy of new federalism returned responsibility for many environmental regulations to the states. Thus, state environmental quality appears to reflect more than just the dictates of federal policy. Additionally, we find tha… Show more

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Cited by 122 publications
(80 citation statements)
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“…The debate continues whether fiscal decentralization will improve or deteriorate environmental quality [13][14][15][16]. Environmental federalism held the opinion that the local governments would pursue economic development at the price of heavy pollution emissions when the spillover effect 2 Discrete Dynamics in Nature and Society was taken into account; that is, the impact of fiscal decentralization on the quality of environment was negative [17].…”
Section: Literature Reviewmentioning
confidence: 99%
“…The debate continues whether fiscal decentralization will improve or deteriorate environmental quality [13][14][15][16]. Environmental federalism held the opinion that the local governments would pursue economic development at the price of heavy pollution emissions when the spillover effect 2 Discrete Dynamics in Nature and Society was taken into account; that is, the impact of fiscal decentralization on the quality of environment was negative [17].…”
Section: Literature Reviewmentioning
confidence: 99%
“…9 Hence, a decrease in productivity gap has a stronger tax e¤ect in the importing region. 10 In setting taxes, a region takes into account the e¤ects that these instruments have on total surplus, tax revenues, and environmental damages. Independently of whether the region has a comparative advantage in a given sector, it faces a trade-o¤ between generating more tax revenues through greater production which requires lower taxes and keeping the environment cleaner through lower production and thus higher taxes.…”
Section: Propositionmentioning
confidence: 99%
“…Although this covers an admittedly short time span, it is interesting that none of the three studies find any evidence of a race to the bottom. List and Gerking (2000), using state-level data, have estimated a fixed-effects model that looks at both levels of environmental quality and abatement expenditures. They find no evidence of any deterioration in environmental quality or decline in abatement efforts; on the contrary, they find some instances of improvements, leading them to conclude that "…in this instance, the race to the bottom did not appear to materialize."…”
Section: Environmental Federalismmentioning
confidence: 99%