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Profits from violating controls on the use of a polluting input

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Author Info
Ing-Marie Andréasson-Gren

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Abstract

Profits from violating the quota, charge and permit market systems are compared. The results indicate that, for a given permit price, the violation profits of the charge and permit market systems are the same and exceed the profits from violating a quota system if the optimal use of inputs in a compliant market is lower than the quota. It is also shown that, under a permit market system, the occurrence of violation decreases the equilibrium price of permits. This implies that the profits from violating a permit market are lower than violation profits of a charge system. Copyright Kluwer Academic Publishers 1992

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File URL: http://hdl.handle.net/10.1007/BF00376829
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental & Resource Economics.

Volume (Year): 2 (1992)
Issue (Month): 5 (September)
Pages: 459-468
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Handle: RePEc:kap:enreec:v:2:y:1992:i:5:p:459-468

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Web page: http://www.springerlink.com/link.asp?id=100263

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Related research
Keywords: Policy instruments; polluting input; violation profits;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Linder, Stephen H. & McBride, Mark E., 1984. "Enforcement costs and regulatory reform: The agency and firm response," Journal of Environmental Economics and Management, Elsevier, vol. 11(4), pages 327-346, December. [Downloadable!] (restricted)
  2. Lee, Dwight R., 1984. "The economics of enforcing pollution taxation," Journal of Environmental Economics and Management, Elsevier, vol. 11(2), pages 147-160, June. [Downloadable!] (restricted)
  3. Harford, Jon D., 1987. "Self-reporting of pollution and the firm's behavior under imperfectly enforceable regulations," Journal of Environmental Economics and Management, Elsevier, vol. 14(3), pages 293-303, September. [Downloadable!] (restricted)
  4. Bohm, Peter & Russell, Clifford S., 1985. "Comparative analysis of alternative policy instruments," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 1, chapter 10, pages 395-460 Elsevier. [Downloadable!] (restricted)
  5. Malik, Arun S., 1990. "Markets for pollution control when firms are noncompliant," Journal of Environmental Economics and Management, Elsevier, vol. 18(2), pages 97-106, March. [Downloadable!] (restricted)
  6. Storey, D J & McCabe, P J, 1980. "The Criminal Waste Discharger," Scottish Journal of Political Economy, Scottish Economic Society, vol. 27(1), pages 30-40, February.
  7. Stigler, George J, 1970. "The Optimum Enforcement of Laws," Journal of Political Economy, University of Chicago Press, vol. 78(3), pages 526-36, May-June. [Downloadable!] (restricted)
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  8. Beavis, Brian & Dobbs, Ian, 1987. "Firm behaviour under regulatory control of stochastic environmental wastes by probabilistic constraints," Journal of Environmental Economics and Management, Elsevier, vol. 14(2), pages 112-127, June. [Downloadable!] (restricted)
  9. Harford, Jon D., 1978. "Firm behavior under imperfectly enforceable pollution standards and taxes," Journal of Environmental Economics and Management, Elsevier, vol. 5(1), pages 26-43, March. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ing-Marie Gren, 1994. "Cost efficient pesticide reductions: A study of Sweden," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 4(3), pages 279-293, June. [Downloadable!] (restricted)
  2. Agnar Sandmo, 2002. "Efficient Environmental Policy with Imperfect Compliance," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(1), pages 85-103, September. [Downloadable!] (restricted)
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