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A complete implementation of the efficient allocation of pollution

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  • Kahana, Nava
  • Mealem, Yosef
  • Nitzan, Shmuel

Abstract

This paper presents a simple twofold mechanism that attains a complete implementation of the efficient allocation of pollution. The first component is adopted from Duggan and Roberts [Duggan, J., Roberts, J., 2002. Implementing the efficient allocation of pollution. American Economic Review 92, 1070-1078.]. The second new component takes care of the moral hazard problem.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 101 (2008)
Issue (Month): 2 (November)
Pages: 142-144

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Handle: RePEc:eee:ecolet:v:101:y:2008:i:2:p:142-144

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Efficient pollution allocation Implementation Market for pollution rights Moral hazard;

References

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  1. Dasgupta, Partha & Hammond, Peter & Maskin, Eric, 1980. "On Imperfect Information and Optimal Pollution Control," Review of Economic Studies, Wiley Blackwell, vol. 47(5), pages 857-60, October.
  2. John Duggan & Joanne Roberts, 2002. "Implementing the Efficient Allocation of Pollution," American Economic Review, American Economic Association, vol. 92(4), pages 1070-1078, September.
  3. Lewis, Tracy R. & Sappington, David E. M., 1995. "Using markets to allocate pollution permits and other scarce resource rights under limited information," Journal of Public Economics, Elsevier, vol. 57(3), pages 431-455, July.
  4. repec:ebl:ecbull:v:17:y:2007:i:4:p:1-9 is not listed on IDEAS
  5. Kwerel, Evan, 1977. "To Tell the Truth: Imperfect Information and Optimal Pollution Control," Review of Economic Studies, Wiley Blackwell, vol. 44(3), pages 595-601, October.
  6. Moore, John & Repullo, Rafael, 1988. "Subgame Perfect Implementation," Econometrica, Econometric Society, vol. 56(5), pages 1191-1220, September.
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Cited by:
  1. Kahana, Nava & Mealem, Yosef & Nitzan, Shmuel, 2009. "The Efficient and Fair Approval of "Multiple-Cost - Single-Benefit" Projects under Unilateral Information," IZA Discussion Papers 4181, Institute for the Study of Labor (IZA).
  2. Mealem, Yosef, 2011. "Implementation of individually rational social choice functions with guaranteed utilities," Economics Letters, Elsevier, vol. 112(2), pages 165-167, August.

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