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Inducing investments and regulating externalities by command versus taxes

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  • Glazer, Amihai

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 social gian, even when consumers are willing to pay for change.

Suggested Citation

  • Glazer, Amihai, 1997. "Inducing investments and regulating externalities by command versus taxes," University of California Transportation Center, Working Papers qt1dc291j6, University of California Transportation Center.
    • Handle: RePEc:cdl:uctcwp:qt1dc291j6
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    Cited by:

    1. Greene, David L, 1998. "Why CAFE worked," Energy Policy, Elsevier, vol. 26(8), pages 595-613, July.
    2. Jyh-Bang Jou, 2001. "Environment, Asset Characteristics, and Optimal Effluent Fees," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(1), pages 27-39, September.

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    Architecture;

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