In this text Jeppesen investigates environmental regulation in a federal system and addresses the underlying question of whether regulation should be decided centrally, by EU institutions, or de-centrally, by individual member states. Whilst simple economic reasoning presumes that transboundary externalities require central solutions and local externalities need local solutions, the author finds that the real answer is much more complicated. He extends the basic theoretical issues to investigate the challenging problems which arise in the actual determination of policy measures in the context of the EU. This study of both the conceptual and practical dimensions of environmental regulation in a federal system should be useful to economists, political scientists, policymakers and students.
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