Chen, Hsiao-Chi; Liu, Shi-Miin - In: Environmental Economics and Policy Studies 7 (2005) 1, pp. 15-37
This article analyzes and compares behaviors of a regulator and polluting firms in tradeable permit systems with and without commitment to auditing. If all firms are compliant, the equilibria under both of the schemes are the same. In contrast, if noncompliant firms exist, the equilibria under...