Efficient Tax-Subsidy for a Polluting Durable Good Industry without Commitment Ability
This paper considers efficient regulation in polluting and imperfectly competitive durable-good markets without commitment ability of producers. If producers rent the durable, then the efficient regulatory scheme consists of a Pigovian emissions tax and a subsidy on the stock of the durable good. In sales markets, efficiency is attained by adjusting the stock subsidy and introducing a durability tax/subsidy. If direct durability regulation is not feasible, then efficiency can still be achieved, but the emissions tax has to be adjusted as well. The efficient stock subsidy may change its sign so that it becomes a tax. Policy implications and their relevance are discussed.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 60 (2004)
Issue (Month): 4 (December)
|Contact details of provider:|| Web page: https://www.mohr.de/fa|
|Order Information:|| Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany|
When requesting a correction, please mention this item's handle: RePEc:mhr:finarc:urn:sici:0015-2218(200412)60:4_494:etfapd_2.0.tx_2-g. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Wolpert)
If references are entirely missing, you can add them using this form.