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Taxation of Emissions and Induce Investment

Author

Listed:
  • Glazer, A.

Abstract

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.

Suggested Citation

  • Glazer, A., 1996. "Taxation of Emissions and Induce Investment," Papers 95-96-5, California Irvine - School of Social Sciences.
  • Handle: RePEc:fth:calirv:95-96-5
    as

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    More about this item

    Keywords

    ENTREPRISES; POLLUTION; REGULATION;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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