Arbeitspapier

Emission standards vs. taxes: The case of asymmetric Cournot duopoly and uncertain control costs

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 the most actual regulation settings the policy maker has to face both of these complications simultaneously. However, hitherto environmental economic theory has restricted itself to either of them when submitting conventional policy instruments to a comparative analysis. The article at hand accounts for closing this gap by investigating the welfare effects of emission standards and taxes against the background of uncertain emission control costs and a polluting asymmetric Cournot duopoly.

Language
Englisch

Bibliographic citation
Series: BGPE Discussion Paper ; No. 45

Classification
Wirtschaft
Externalities
Information and Uncertainty: Other
Oligopoly and Other Imperfect Markets
Environmental Economics: Government Policy
Subject
Asymmetric Cournot duopoly
external diseconomies of pollution
cost uncertainty
emission standard
emission tax

Event
Geistige Schöpfung
(who)
Heuson, Clemens
Event
Veröffentlichung
(who)
Friedrich-Alexander-Universität Erlangen-Nürnberg, Bavarian Graduate Program in Economics (BGPE)
(where)
Nürnberg
(when)
2008

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Heuson, Clemens
  • Friedrich-Alexander-Universität Erlangen-Nürnberg, Bavarian Graduate Program in Economics (BGPE)

Time of origin

  • 2008

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