Chen, Hsiao-Chi; Liu, Shi-Miin; Chang, Chiung-Yun - In: Environmental Economics and Policy Studies 15 (2013) 2, pp. 171-188
This paper analyzes and compares behaviors of regulators and polluting firms in emission tax systems with and without commitment to monitoring. In the commitment case, firms can be compliant or non-compliant at equilibria. Firms’ compliance implies that regulators will face the paradox of ex...