Emission tax on a monopolistic polluter with unknown costs
Simple emission taxes chosen by a regulator who does not know the precise costs of a regulated monopolistic firm are examined. When the costs of both producing the final products and abating pollution are not known, but are known to be related, the regulator can cause the firm to reveal its costs truthfully by postponing its decision on a tax rate until it has inspected abatement equipment. Depending on the basic parameters, this postponement can increase social welfare.
Year of publication: |
2011
|
---|---|
Authors: | Hisashi, Sawaki |
Published in: |
Manager Journal. - Facultatea de Administraţie şi Afaceri, ISSN 1453-0503. - Vol. 13.2011, 1, p. 90-106
|
Publisher: |
Facultatea de Administraţie şi Afaceri |
Subject: | effluent tax | environmental policy | monopolistic polluter | incomplete information | signaling |
Saved in:
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