Taxation of Emissions and Induce Investment
Government often appears to have the objective of inducing firms to make investments that will help achieve regulatory goals: Regulations of automotive fuel efficiency and emissions are two examples. We find rhat a tax on the activity causing the externality may be unable in induce the desired investment and that when a tax could induce the investment it may be time inconsistent.
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|Date of creation:||1996|
|Contact details of provider:|| Postal: UNIVERSITY OF CALIFORNIA IRVINE, SCHOOL OF SOCIAL SCIENCES, IRVINECALIFORNIA 91717 U.S.A.|
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