regulation and costly abatement. Regulation may be taxes or marketable permits. The innovating firm invests in R&D and develops … technologies which reduce the cost of pollution abatement. The innovating firm can patent this innovation and use a licensing fee … a pollution tax or a marketable permit. However, the returns to the innovator from innovation are not the same under the …

Public policies for pollution control, including climate change policies, sometimes allow polluters in one sector … subject to an emissions cap to offset excessive emissions in that sector with pollution abatement in another sector. The … allowing offsets may increase pollution abatement and reduce illegal pollution, even if the government has a fixed enforcement …

In recent years, cases in which state governments chose to override federal environmental regulation with tighter … paper argues that this change arose at least in part because of a shift in the type of regulation used at the federal level …, from command-and-control regulation toward more incentive-based regulation. Under an incentive-based federal regulation, a …

growing distributional concern that market forces could increase the pollution exposure gap between disadvantaged and other … communities by spatially reallocating pollution. We estimate how this "environmental justice gap" changed following the 2013 … critiques. Embedding a pollution transport model within a program evaluation framework, we find that while the EJ gap was …

This essay revisits the question of instrument choice for the regulation of externalities in the context of climate …

can establish the overall pollution-reduction goal for a cap-and-trade system by setting the cap, and leave it up to the … theory and in practice. A number of factors can call the independence property into question theoretically, including market …

Quantity-based regulation with banking allows regulated firms to shift obligations across time in response to periods …

In a market subject to environmental regulation, a firm's strategic behavior affects the production and emissions … pollution by approximately nine percent, and therefore, substantially reduced the price of the region's pollution permits …