Arbeitspapier

Non-Verifiable Emissions, Voluntary Agreements, and Emission Taxes

This paper demonstrates that voluntary agreements between a regulator and an industry can be Pareto superior to environmental taxes. Further, such agreements may differ from direct regulation in a non-trivial way. The first-best optimum may be included in the set of possible agreements, even if it is not attainable using tax instruments. There is no uncertainty or asymmetric information in the model. However, it is assumed that some emissions are observable, but not verifiable. This may be interpreted as a situation where precise formal specification of the pollutant is infeasible.

Language
Englisch

Bibliographic citation
Series: Discussion Papers ; No. 214

Classification
Wirtschaft
Taxation and Subsidies: Efficiency; Optimal Taxation
Industrial Policy; Sectoral Planning Methods
Renewable Resources and Conservation: Government Policy
Subject
Voluntary agreements
Second-best tax
Non-verifiability

Event
Geistige Schöpfung
(who)
Nyborg, Karine
Event
Veröffentlichung
(who)
Statistics Norway, Research Department
(where)
Oslo
(when)
1998

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Nyborg, Karine
  • Statistics Norway, Research Department

Time of origin

  • 1998

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