Arbeitspapier
Emissions taxes and abatement regulation under uncertainty
We consider environmental regulation in a context where firms invest in abatement technology under conditions of uncertainty about subsequent abatement cost, but can subsequently adjust output in the light of true marginal abatement cost. Where an emission tax is the only available instrument, policy faces a trade-off between the incentive to invest in abatement technology and efficiency in subsequent output decisions. More efficient outcomes can be achieved through combined use of tax and mandated use of a given abatement technology or through combining the tax with an abatement technology investment subsidy. We compare the properties of the two potential supplements to the emissions tax.
- Sprache
-
Englisch
- Erschienen in
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Series: CESifo Working Paper ; No. 4121
- Klassifikation
-
Wirtschaft
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- Thema
-
externalities
Pigouvian taxes
subsidies
regulation
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Christiansen, Vidar
Smith, Stephen
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2013
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Christiansen, Vidar
- Smith, Stephen
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2013