This paper examines the efficiency enhancing potential of supplementing existing policies of controlling consumption pollution with environmental advertisement. Our definition of environmental advertisement includes both information dissemination and persuasion. While incentive-based regulations...

Grandfathering of emission permits creates a rent to incumbent firms since a valuable asset is freely distributed to them. In this paper, we examine the strategic behaviour of polluters that anticipate a change in environmental regulation from a standard-setting to tradable emission permits with...