Prices vs Quantities with Multiple Pollutants
AbstractWe examine the choice of policy instrument price, quantity, or a mix of the two when two pollutants are regulated and firms’ abatement costs are private information. A key parameter that affects this choice is the technological externality between the abatement efforts involved, i.e., whether they are substitutes or complements. If they are complements, a mix policy instrument with a tax on one pollutant and a quota on the other is sometime preferable, even if the pollutants are identical in terms of benefits and costs of abatement. Yet, if they are substitutes, the mix policy is dominated by taxes or quotas.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 517.
Length: 30 pages
Date of creation: 27 Sep 2011
Date of revision:
Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
More information through EDIRC
pollution; environmental regulation; policy mixes; tax; emission standard; asymmetric information;
Other versions of this item:
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-09 (All new papers)
- NEP-CTA-2011-10-09 (Contract Theory & Applications)
- NEP-CWA-2011-10-09 (Central & Western Asia)
- NEP-ENE-2011-10-09 (Energy Economics)
- NEP-ENV-2011-10-09 (Environmental Economics)
- NEP-REG-2011-10-09 (Regulation)
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.:
- Elofsson, Katarina, 2003. "Cost-effective reductions of stochastic agricultural loads to the Baltic Sea," Ecological Economics, Elsevier, vol. 47(1), pages 13-31, November.
- Leightner, Jonathan E., 1999. "Weather-induced changes in the tradeoff between SO2 and NOx at large power plants," Energy Economics, Elsevier, vol. 21(3), pages 239-259, June.
- Repetto, Robert, 1987. "The policy implications of non-convex environmental damages: A smog control case study," Journal of Environmental Economics and Management, Elsevier, vol. 14(1), pages 13-29, March.
- Annegrete Bruvoll & Hege Medin, 2003. "Factors Behind the Environmental Kuznets Curve. A Decomposition of the Changes in Air Pollution," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(1), pages 27-48, January.
- Richard S.J. Tol, 2004.
"Multi-Gas Emission Reduction For Climate Change Policy: An Application Of Fund,"
FNU-46, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2004.
- Richard S.J. Tol, 2006. "Multi-Gas Emission Reduction for Climate Change Policy: An Application of Fund," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 235-250.
- Stephen P. Holland, 2010. "Spillovers from Climate Policy," NBER Working Papers 16158, National Bureau of Economic Research, Inc.
- Syri, Sanna & Amann, Markus & Capros, Pantelis & Mantzos, Leonidas & Cofala, Janusz & Klimont, Zbigniew, 2001. "Low-CO2 energy pathways and regional air pollution in Europe," Energy Policy, Elsevier, vol. 29(11), pages 871-884, September.
- Moslener, Ulf & Requate, Till, 2007.
"Optimal abatement in dynamic multi-pollutant problems when pollutants can be complements or substitutes,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 31(7), pages 2293-2316, July.
- Moslener, Ulf & Requate, Till, 2005. "Optimal Abatement in Dynamic Multi-Pollutant Problems When Pollutants can be Complements or Substitutes," ZEW Discussion Papers 05-27, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Moslener, Ulf & Requate, Till, 2005. "Optimal Abatement in Dynamic Multipollutant Problems when Pollutants can be Complements or Substitutes," Economics Working Papers 2005,03, Christian-Albrechts-University of Kiel, Department of Economics.
- Montero, Juan-Pablo, 2001. "Multipollutant Markets," RAND Journal of Economics, The RAND Corporation, vol. 32(4), pages 762-74, Winter.
- Burtraw, Dallas & Krupnick, Alan & Palmer, Karen & Paul, Anthony & Toman, Michael & Bloyd, Cary, 2003. "Ancillary benefits of reduced air pollution in the US from moderate greenhouse gas mitigation policies in the electricity sector," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 650-673, May.
- Pizer, William A., 2002. "Combining price and quantity controls to mitigate global climate change," Journal of Public Economics, Elsevier, vol. 85(3), pages 409-434, September.
- Bollen, Johannes & van der Zwaan, Bob & Brink, Corjan & Eerens, Hans, 2009. "Local air pollution and global climate change: A combined cost-benefit analysis," Resource and Energy Economics, Elsevier, vol. 31(3), pages 161-181, August.
- Timo Kuosmanen & Marita Laukkanen, 2011. "(In)Efficient Environmental Policy with Interacting Pollutants," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 48(4), pages 629-649, April.
- Mandell, Svante, 2008. "Optimal mix of emissions taxes and cap-and-trade," Journal of Environmental Economics and Management, Elsevier, vol. 56(2), pages 131-140, September.
- Caplan, Arthur J. & Silva, Emilson C.D., 2005.
"An efficient mechanism to control correlated externalities: redistributive transfers and the coexistence of regional and global pollution permit markets,"
Journal of Environmental Economics and Management,
Elsevier, vol. 49(1), pages 68-82, January.
- Arthur Caplan & Emilson Silva, 2002. "An Efficient Mechanism to Control Correlated Externalities: Redistributive Transfers and the Coexistence of Regional and Global Pollution Permit Markets," Working Papers 2002-23, Utah State University, Department of Economics.
- Stef Proost & Denise Van Regemorter, 2003. "Interaction between local air pollution and global warming and its policy implications for Belgium," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 3(3), pages 266-286.
- Bonilla, Jorge & Coria, Jessica & Sterner, Thomas, 2012. "Synergies and Trade-offs between Climate and Local Air Pollution: Policies in Sweden," Working Papers in Economics 529, University of Gothenburg, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eva-Lena Neth).
If references are entirely missing, you can add them using this form.