Muller, Nicholas Z.; Mendelsohn, Robert - In: American Economic Review 102 (2012) 1, pp. 608-12
Fraas and Lutter raise two important points in their comment on Muller and Mendelsohn (2009): How to design policies for sources that yield negative marginal damages? How does statistical uncertainty in the marginal damages affect the trading ratios across emitters? We address both issues in...