Arbeitspapier

Weitzman revisited: emission standards vs. taxes with uncertain control costs and market power of polluting firms

It is well known that uncertainty concerning firms' costs as well as market power of the latter have to be taken into account in order to design and choose environmental policy instruments in an optimal way. As a matter of fact, in most actual regulation settings the policy maker has to face both of these complications simultaneously. However, hitherto environmental economic theory has restricted to either of them when submitting conventional policy instruments to a comparative analysis. The article at hand takes a first step in closing this gap. It investigates the welfare effects of emission standards and taxes against the background of uncertain emission control costs and various degrees of the polluting firms' market power.

Language
Englisch

Bibliographic citation
Series: Volkswirtschaftliche Diskussionsreihe ; No. 299

Classification
Wirtschaft
Externalities
Information and Uncertainty: Other
Oligopoly and Other Imperfect Markets
Environmental Economics: Government Policy
Subject
Cournot oligopoly
external diseconomies of pollution
cost uncertainty
emission standard
emission tax
Umweltpolitik
Entscheidung bei Unsicherheit
Umweltauflage
Umweltabgabe
Ökosteuer
Umweltbehörde
Kosten
Marktmacht
Externer Effekt
Theorie

Event
Geistige Schöpfung
(who)
Heuson, Clemens
Event
Veröffentlichung
(who)
Universität Augsburg, Institut für Volkswirtschaftslehre
(where)
Augsburg
(when)
2008

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Heuson, Clemens
  • Universität Augsburg, Institut für Volkswirtschaftslehre

Time of origin

  • 2008

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