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Inducing investments and regulating externalities by command versus taxes

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  • Glazer, Amihai
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    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 the social gain, even when consumers are willing to pay for the change.

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    Bibliographic Info

    Paper provided by University of California Transportation Center in its series University of California Transportation Center, Working Papers with number qt4hx0h53n.

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    Date of creation: 01 Jan 1997
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    Handle: RePEc:cdl:uctcwp:qt4hx0h53n

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    Related research

    Keywords: Regulation; Externalities; Taxes; Urban Studies and Planning;

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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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