English, Article, Journal or magazine article edition: Environmental policy uncertainty, policy coordination and relocation decisions T. VERBEKE; M. DE CLERCQ

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Bookmark: http://trove.nla.gov.au/version/14522
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Environmental policy uncertainty, policy coordination and relocation decisions
Author
  • T. VERBEKE
  • M. DE CLERCQ
Physical Description
  • preprint
Notes
  • We analyse the relocation decision of a firm who is producing in one country (home country) but has the opportunity to relocate. The firm is faced with uncertain environmental policy formation both at home as well as in the foreign country. We allow for international environmental policy coordination and for environmental policy risks to be correlated with economy-wide risk. We show that the impact of uncertainty on the relocation decision depends on the absolute level of uncertainty. However, this relationship is substantially affected by the existence of policy coordination and the correlation between environmental policy uncertainty and economy-wide risks. In the case of coordinated environmental policies for instance, an Ushaped relation between uncertainty and relocation emerges.
  • Location decision, policy uncertainty, environmental policy coordination, option
  • RePEc:rug:rugwps:03/​208
Language
  • English
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