In this paper, we study a two-country dynamic setup with environmental externalities and potential model …

abatement technology and efficiency in subsequent output decisions. More efficient outcomes can be achieved through combined use … investment subsidy. We compare the properties of the two potential supplements to the emissions tax. …

demand by reducing negative externalities. We apply the framework to the database of Kee et al. (2009) and derive ad valorem …

A pay-as-you-go pension scheme is associated with positive externalities of having children and providing them with …

growth and harm future generations. On the other hand, competitive equilibria are inefficient if externalities sustain long … can be removed by an investment subsidy without making the current or future generations worse off only if coupled with …

externalities appear along the lifecycle. In a simple model, we show that it may be efficient to subsidize innovative firms in their … early stages or to protect mature firms from competition to appropriate these externalities. However, non …-benevolent politicians may not choose efficient policies. Real-world examples indicate that politicians tend to concentrate on externalities …