incentives to prevent harm, or not to engage in harmful activities, provided that they have at least the required level of assets …

importance in controlling harmful externalities. I compare the tax and liability here in theory and suggest that the conclusions … factors are emphasized in the analysis: inefficiency of incentives under taxes when, as would be typical, it would be … incentives under strict liability, which requires only that actual harms be measured; efficiency of incentives to exercise …

has an advantage over taxation: inefficiency of incentives arises under taxation when, as would be typical, it would be … impractical for a tax to reflect all variables that significantly affect expected harm, whereas efficiency of incentives under …. However, taxation enjoys an advantage over liability: incentives under liability are diluted to the degree that injurers might …

This article studies how liability for environmentally harmful discharges affects the incentives of firms to engage in … cleanup and invest in precautions, as well as the incentives of consumers to purchase the goods whose production leads to …