Document Type

Article

Journal/Book Title/Conference

Economics Research Institute Study Paper

Volume

7

Publisher

Utah State University Department of Economics

Publication Date

1997

Rights

Copyright for this work is held by the author. Transmission or reproduction of materials protected by copyright beyond that allowed by fair use requires the written permission of the copyright owners. Works not in the public domain cannot be commercially exploited without permission of the copyright owner. Responsibility for any use rests exclusively with the user. For more information contact the Institutional Repository Librarian at digitalcommons@usu.edu.

First Page

1

Last Page

25

Abstract

I construct a dynamic model of the environmental policy formulation process in a stylized developing country (DC). N ext, I analyze the employment and output effects of three pollution control policies. These policies embody different assumptions about the DC government's ability to commit to its announced course of action. I characterize the timepath of the government's policy variable, and then I show that optimality calls for an activist policy, irrespective of the length of time to which the government can commit to its announced policy. However, the effects of this activist policy depend fundamentally on the government's period of commitment.

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