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The Design of Regulations Expressed as Ratios or Percentage Quotas

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  • McKitrick, Ross

Abstract

Regulations (such as pollution standards) are frequently expressed as a uniform ratio between a target variable and a base variable. The efficient form of such regulations is firm-specific. When firms are very different in size, large firms typically should face a relatively more stringent constraint, but this ranking may easily reverse when firms are more similar. Efficiency costs of uniform ratio standards are calculated. Copyright 2001 by Kluwer Academic Publishers

Suggested Citation

  • McKitrick, Ross, 2001. "The Design of Regulations Expressed as Ratios or Percentage Quotas," Journal of Regulatory Economics, Springer, vol. 19(3), pages 295-305, July.
    • Handle: RePEc:kap:regeco:v:19:y:2001:i:3:p:295-305
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    Cited by:

    1. Rudik, Ivan, 2018. "Tradable credit markets for intensity standards," Economic Modelling, Elsevier, vol. 72(C), pages 202-215.
    2. Don Fullerton & Garth Heutel, 2010. "The General Equilibrium Incidence of Environmental Mandates," American Economic Journal: Economic Policy, American Economic Association, vol. 2(3), pages 64-89, August.
    3. Aaron Hatcher, 2007. "Firm behaviour under pollution ratio standards with non-compliance," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(1), pages 89-98, September.

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