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Inducing investments and regulating externalities by command versus taxes

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  • Glazer, Amihai

Abstract

A linear tax on an externality-generating activity may not attain the first-best social optimum. The problem arises because a monopolist's gain from improving the characteristics of a product may differ from social gian, even when consumers are willing to pay for change.Â

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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 25 (1997)
Issue (Month): 2 (February)
Pages: 255-257

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Handle: RePEc:eee:enepol:v:25:y:1997:i:2:p:255-257

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

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  1. M. L. Weitzman, 1973. "Prices vs. Quantities," Working papers 106, Massachusetts Institute of Technology (MIT), Department of Economics.
  2. A. Michael Spence, 1975. "Monopoly, Quality, and Regulation," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 417-429, Autumn.
  3. Milliman, Scott R. & Prince, Raymond, 1989. "Firm incentives to promote technological change in pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 247-265, November.
  4. Hassett, Kevin A. & Metcalf, Gilbert E., 1993. "Energy conservation investment : Do consumers discount the future correctly?," Energy Policy, Elsevier, vol. 21(6), pages 710-716, June.
  5. Jung, Chulho & Krutilla, Kerry & Boyd, Roy, 1996. "Incentives for Advanced Pollution Abatement Technology at the Industry Level: An Evaluation of Policy Alternatives," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 95-111, January.
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Cited by:
  1. Jyh-Bang Jou, 2001. "Environment, Asset Characteristics, and Optimal Effluent Fees," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(1), pages 27-39, September.
  2. Greene, David L, 1998. "Why CAFE worked," Energy Policy, Elsevier, vol. 26(8), pages 595-613, July.

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