Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73071
Authors: 
Farzanegan, Mohammad Reza
Mennel, Tim
Year of Publication: 
2012
Series/Report no.: 
Joint Discussion Paper Series in Economics 22-2012
Abstract: 
We estimate the impact of fiscal decentralization on different indicators of pollution for more than 80 countries from 1970 to 2000. Our cross country estimates show that fiscal decentralization increases pollution. However, higher quality of institutions can limit the destructive environmental effects of decentralization. The empirical results confirm a strand of the literature on decentralization that predicts a race to the bottom under federalism. The mitigating effect of good governance can be explained by relative preferences of local and central governments for environmental quality.
Subjects: 
decentralization
pollution
environmental quality
institutions
JEL: 
C21
H11
H72
Q53
Q56
Document Type: 
Working Paper

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