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How Transport Costs and Pollution Taxes affect Location Decisions of a Firm? A Theoretical Approach

How Transport Costs and Pollution Taxes affect Location Decisions of a Firm? A Theoretical Approach

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How Transport Costs and Pollution Taxes affect Location Decisions of a Firm? A Theoretical Approach
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<strong>Center for International Trade and Development (JNU) </strong> departmental seminar Speaker: <strong>Gaurav Bhattacharya</strong>, PhD Candidate, CITD, JNU Title: <strong>How Transport Costs and Pollution Taxes affect Location Decisions of a Firm? A Theoretical Approach</strong> <strong>Abstract: </strong>This paper examines how transportation costs and pollution taxes both jointly determine the location of production in a spatial framework. The two distinct types of location problems dealt with are (1) location of vertical stages of production and (2) location of an industry or firm in a multi-market framework. The study extends the standard location theory by taking into account pollution taxes along with transportation costs. The results of the extended Weberian location model of vertical production structure shows that the ideal location, as predicted by Weber, may not hold true under all circumstances. Optimal location choice is driven by the nature of processing as well as differences in inter-regional pollution taxes along with transportation costs. In case of horizontal production structure, a variant of the Celic and Orbay model is used to show that a firm's location decision is driven by both transportation costs and pollution taxes, which further depend on the profit tax accruing to a region which serves as a potential host to the firm. Date: <strong>Wednesday, 16th September 2015</strong>

A warm welcome to the modified and updated website of the Centre for East Asian Studies. The East Asian region has been at the forefront of several path-breaking changes since 1970s beginning with the redefining the development architecture with its State-led development model besides emerging as a major region in the global politics and a key hub of the sophisticated technologies. The Centre is one of the thirteen Centres of the School of International Studies, Jawaharlal Nehru University, New Delhi that provides a holistic understanding of the region.

Initially, established as a Centre for Chinese and Japanese Studies, it subsequently grew to include Korean Studies as well. At present there are eight faculty members in the Centre. Several distinguished faculty who have now retired include the late Prof. Gargi Dutt, Prof. P.A.N. Murthy, Prof. G.P. Deshpande, Dr. Nranarayan Das, Prof. R.R. Krishnan and Prof. K.V. Kesavan. Besides, Dr. Madhu Bhalla served at the Centre in Chinese Studies Programme during 1994-2006. In addition, Ms. Kamlesh Jain and Dr. M. M. Kunju served the Centre as the Documentation Officers in Chinese and Japanese Studies respectively.

The academic curriculum covers both modern and contemporary facets of East Asia as each scholar specializes in an area of his/her interest in the region. The integrated course involves two semesters of classes at the M. Phil programme and a dissertation for the M. Phil and a thesis for Ph. D programme respectively. The central objective is to impart an interdisciplinary knowledge and understanding of history, foreign policy, government and politics, society and culture and political economy of the respective areas. Students can explore new and emerging themes such as East Asian regionalism, the evolving East Asian Community, the rise of China, resurgence of Japan and the prospects for reunification of the Korean peninsula. Additionally, the Centre lays great emphasis on the building of language skills. The background of scholars includes mostly from the social science disciplines; History, Political Science, Economics, Sociology, International Relations and language.

Several students of the centre have been recipients of prestigious research fellowships awarded by Japan Foundation, Mombusho (Ministry of Education, Government of Japan), Saburo Okita Memorial Fellowship, Nippon Foundation, Korea Foundation, Nehru Memorial Fellowship, and Fellowship from the Chinese and Taiwanese Governments. Besides, students from Japan receive fellowship from the Indian Council of Cultural Relations.