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Input Substitution and Pollution Control Under Uncertainty and Firm Heterogeneity

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Author Info
Wu, Junjie
Abstract

Much research has focused on emission-based instruments for pollution control, but indirect approaches that control input use or production technologies are often used. This article derives a simple rule for evaluating the relative efficiency of input-use taxes and standards in the presence of input substitution, firm heterogeneity, and uncertainty. The importance of input substitution is demonstrated and the key parameters that determine the relative efficiency are identified. Copyright 2000 by Blackwell Publishing Inc.

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Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.

Volume (Year): 2 (2000)
Issue (Month): 2 ()
Pages: 273-88
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Handle: RePEc:bla:jpbect:v:2:y:2000:i:2:p:273-88

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  1. Bernardo Moreno Jiménez & José Luis Torres Chacón, 2005. "Output subsidies and quotas under uncertainty and firm heterogeneity," Economic Working Papers at Centro de Estudios Andaluces E2005/24, Centro de Estudios Andaluces. [Downloadable!]
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