Abstract
In this chapter, we integrate intra-region labor migration and inter-region labor migration into the Harris-Todaro model in the presence of unidirectional trans-boundary pollution. We conduct a simple comparative static analysis of regional economic and environmental effects of the central government’s development policies on two regions, reducing the transfer cost of inter-region labor migration and increasing the capital subsidy to the less developed region. In addition, we compare the environmental and regional economic effects of the transfer of pollution abatement technology in two regions.
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Notes
- 1.
In the present paper, we assume that all the production functions share the same properties with that of the industrial sector 1. Moreover, we have \( {\mathit{\mathsf{F}}}_{\mathit{\mathsf{J}}}^{\mathit{\mathsf{i}}}=\partial {\mathit{\mathsf{F}}}^{\mathit{\mathsf{i}}}/\partial \mathit{\mathsf{J}} \) and \( {\mathit{\mathsf{F}}}_{\mathit{\mathsf{J}\mathsf{k}}}^{\mathit{\mathsf{i}}}=\partial {\left({\mathit{\mathsf{F}}}^{\mathit{\mathsf{i}}}\right)}^2/\partial \mathit{\mathsf{J}}\partial \mathit{\mathsf{k}} \), for example, \( {\mathit{\mathsf{F}}}_{\mathit{\mathsf{L}}}^{{\mathit{\mathsf{M}}}_1}=\partial {\mathit{\mathsf{F}}}^{{\mathit{\mathsf{M}}}_1}/\partial \mathit{\mathsf{L}} \) and \( {\mathit{\mathsf{F}}}_{\mathit{\mathsf{L}\mathsf{K}}}^{{\mathit{\mathsf{M}}}_1}={\partial}^2{\mathit{\mathsf{F}}}^{{\mathit{\mathsf{M}}}_1}/\partial \mathit{\mathsf{L}}\partial \mathit{\mathsf{K}} \).
- 2.
The increase of the capital subsidy, \( {\overline{K}}_{tr} \), has ambiguous impacts on both regional utility levels.
- 3.
The transfer of the pollution abatement technology in region 1 has ambiguous impacts on both regional utility levels.
- 4.
With the rapid economic development of the eastern coastal areas of China, the tightly regulations of industrial pollution emissions force the heaving polluting industries to move to the west regions. However, the pollution generated by these heavy polluting industries disseminated to the east regions again, through the agents like air and rivers. This is the unidirectional trans-boundary pollution in this chapter.
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Li, X., Zhou, Y. (2017). Development Policies, Transfer of Pollution Abatement Technology, and Trans-boundary Pollution. In: Li, X. (eds) Labor Transfer in Emerging Economies. New Frontiers in Regional Science: Asian Perspectives, vol 12. Springer, Singapore. https://doi.org/10.1007/978-981-10-3569-2_9
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DOI: https://doi.org/10.1007/978-981-10-3569-2_9
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