Environmental policy and wage setting


  • María Luz Campo Universidad del País Vasco (UPV-EHU)




Monopoly union model, emission standards


This paper studies the interaction between the performance of firms and unions and the environmental policy chosen by governments when there is a negative environmental externality from production of a good which only affects the country where the firm is located. I assume that governments choose an upper limit on emissions, unions choose the wage rates and firms choose the employment level. Specifically, I analyze the effect that unionized labor markets have on environmental policy.


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Author Biography

María Luz Campo, Universidad del País Vasco (UPV-EHU)

Facultad de Ciencias Económicas y Empresariales
Dpto. de Fundamentos del Análisis Económico I


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