Voluntary Agreements and Non-Verifiable Emissions
AbstractIf pollution is observable, but some emissions cannot be verified by court,voluntary agreements between a regulator and an industry may bewelfare-improving compared to second-best emission taxes. Such agreementsdiffer from direct regulation in a non-trivial way. The first-best optimummay be included in the set of possible agreements, even if it is notattainable using tax instruments. The non-verifiability may, for example, beassociated with delimitation problems in defining the pollution tax base. Copyright Kluwer Academic Publishers 2000
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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 17 (2000)
Issue (Month): 2 (October)
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Web page: http://www.springerlink.com/link.asp?id=100263
voluntary agreements; second-best tax; non-verifiability;
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