Prices vs quantities with multiple pollutants

Ambec, Stefan and Coria, Jessica (2013) Prices vs quantities with multiple pollutants. Journal of Environmental Economics and Management, 66 (1). pp. 123-140.

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Official URL: http://tse-fr.eu/pub/26746

Abstract

We examine the choice of policy instruments (price, quantity or a mix of the two) when two pollutants are regulated and firms' abatement costs are private information. Whether abatement efforts are complements or substitutes is key determining the choice of policies. When pollutants are complements, a mixed policy instrument with a tax on one pollutant and a quota on another is sometimes preferable even if the pollutants are identical in terms of benefits and costs of abatement. Yet, if they are substitutes, the mixed policy is dominated by taxes or quotas.

Item Type: Article
Language: English
Date: July 2013
Refereed: Yes
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 09 Jul 2014 17:32
Last Modified: 07 Mar 2018 13:22
OAI ID: oai:tse-fr.eu:26746
URI: http://publications.ut-capitole.fr/id/eprint/15492

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