McKitrick, Ross; Collinge, Robert A. - In: Canadian Journal of Economics 33 (2000) 4, pp. 1106-1119
Confusion surrounding the appropriateness of long-run considerations in effluent regulation has arisen in the literature and recently carried over into textbooks. We use a factor input model under oligopsony to show that, when firms can influence the level of marginal damages, a linear pollution...