Trade-related externalities and spatial public goods in computable general equilibrium

• Main Author: Warziniack, Travis W
• Format: Dissertation
• Language: English
• Published: ProQuest Dissertations & Theses 01.01.2008
• Subjects: Aquatic sciences; Economics; Endangered & extinct species; Environmental science; Exports; Externality; Fish hatcheries; Households; Mollusks; Studies
• ISBN: 1109180888; 9781109180886

This dissertation contains three chapters, each using computable general equilibrium and applied welfare analysis to examine environmental policies. Chapters 1 and 2 measure welfare effects of a zebra mussel invasion into the Columbia River Basin. Chapter 1 describes the basic structure of the general equilibrium model and presents welfare analysis for degrees of uncertainty in the severity of invasion across industrial sectors. In Chapter 2, we simplify the model and solve for an analytical expression for welfare changes. We find that taxes could exacerbate welfare losses when the vector of introduction is tied to exported services. In our Columbia River Basin example, the most likely method of introduction of zebra mussels is through nonresident recreational boating, and taxing this activity could lead to additional welfare losses. Changes in welfare are considered for a range of tax rates and elasticities. The model in Chapter 3 imposes a political constraint on a monocentric city model to specify where open space is likely to be located. Given a particular location in the city we solve for a minimum set of attributes the open space must have to receive popular support. We find significant welfare losses associated with allocating open space through public referendum. Parks that would lead to community-wide welfare improvements are always underprovided, public amenities from any open space provided exceed the social optimum, and open space throughout the city is inappropriately located.