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Input Substitution and Pollution Control under Uncertainty and Firm Heterogeneity

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  • Junjie Wu

Abstract

Much research has focused on emission‐based instruments for pollution control, but indirect approaches that control input use or production technologies are often used. This article derives a simple rule for evaluating the relative efficiency of input‐use taxes and standards in the presence of input substitution, firm heterogeneity, and uncertainty. The importance of input substitution is demonstrated and the key parameters that determine the relative efficiency are identified.

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  • Junjie Wu, 2000. "Input Substitution and Pollution Control under Uncertainty and Firm Heterogeneity," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 2(2), pages 273-288, April.
    • Handle: RePEc:bla:jpbect:v:2:y:2000:i:2:p:273-288
    DOI: 10.1111/1097-3923.00039
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    Cited by:

    1. Bernardo Moreno & Jose L. Torres, 2007. "Output Subsidies and Quotas under Uncertainty and Firm Heterogeneity," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 6(2), pages 147-160, August.
    2. Tang, Erzi & Liu, Fengchao & Zhang, Jingjing & Yu, Jiao, 2014. "A model to analyze the environmental policy of resource reallocation and pollution control based on firms' heterogeneity," Resources Policy, Elsevier, vol. 39(C), pages 88-91.

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