Breitscheidel, Jörg - Zentrum für Europäische Wirtschaftsforschung (ZEW) - 2005
We explore the design of self-financing tax-subsidy schemes to solve hold-up problems in environmental regulation. The … announcement of the tax rate seems to be preferable to solve hold-up problems with respect to the investment in environmental R …&D. In contrast, only the announcement of the subsidy rate is adequate to solve hold-up problems with respect to the …