-best emission policy and extensions to city asymmetries, a fiscal externality, local pollution, generalized commuting costs and … modelling of pollution and pollution abatement. We derive two key insights. First, if the national government implements a … permit system (equivalently, pollution taxes) that allow for emissions as in the first-best, cities chosen by local …

and the demand for fossil fuels; (2) on the demand side, absent administrative costs, optimal policies would tax both the …

What is a feasible and efficient policy to regulate air pollution from vehicles? A Pigouvian tax is technologically … infeasible. Most countries instead rely on exhaust standards that limit air pollution emissions per mile for new vehicles. We … assess the effectiveness and efficiency of these standards, which are the centerpiece of US Clean Air Act regulation of …

choice of less fuel-efficient vehicles. In addition, with lower annual driving costs to the city center, households change …