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Linking of Repeated Games. When Does It Lead to More Cooperation and Pareto Improvements?

von Mouche, Pierre; Folmer, Henk - 2007

Linking of repeated games and exchange of concessions in fields of relative strength may lead to more cooperation and to Pareto improvements relative to the situation where each game is played separately. In this paper we formalize these statements, provide some general results concerning the...

Persistent link: https://www.econbiz.de/10010312472

Cheap Talk, Gullibility, and Welfare in an Environmental Taxation Game

Deissenberg, Christophe; Dawid, Herbert; Sevcik, Pavel - 2004

We consider a simple dynamic model of environmental taxation that exhibits time inconsistency. There are two categories of firms, Believers, who take the tax announcements made by the Regulator to face value, and Non-Believers, who perfectly anticipate the Regulator's decisions, albeit at a...

Persistent link: https://www.econbiz.de/10011325007

Environmental Policy and Capital Movements: The Role of Government Commitment

Marsiliani, Laura; Renström, Thomas I. - 2003

This paper explores the relationship between environmental protection and international capital movements, when tax policy is endogenous (through voting). A two-period general equilibrium model of a small open economy is specified to compare the effects of two different constitutions (commitment...

Persistent link: https://www.econbiz.de/10011325033

Voluntary Agreements under Endogenous Legislative Threats

Glachant, Matthieu - 2003

The paper analyzes the welfare properties of voluntary agreements (VA) with polluters, when they are obtained under the legislative threat of an alternative stricter policy option. In the model, the threat is an abatement quota. Both the threat and its probability of implementation are...

Persistent link: https://www.econbiz.de/10011325049

Pollution Abatement Investment When Firms Lobby Against Environmental Regulation

Farzin, Y. Hossein; Zhao, Jinhua - 2003

In this paper, we study a firm's optimal lobby behavior and its effect on investment in pollution abatement capital. We develop a dynamic framework where a representative firm can invest in both abatement and lobby capital in response to a possible future increase in pollution tax. We show that...

Persistent link: https://www.econbiz.de/10011325109

Environmental policy and growth when inputs are differentiated in pollution intensity

Ricci, Francesco - 2002

Environmental policy affects the distribution of market shares if intermediate goods are differentiated in pollution intensity. When innovations are environmental friendly, a tax on emissions skews demand towards new goods, which are the most productive. In this case along a balanced growth path...

Persistent link: https://www.econbiz.de/10011335685

Environmental policy and technological change

Jaffe, Adam B.; Newell, Richard G.; Stavins, Robert N. - 2002

The relationship between technological change and environmental policy has received increasing attention from scholars and policy makers alike over the past ten years. This is partly because the environmental impacts of social activity are significantly affected by technological change, and...

Persistent link: https://www.econbiz.de/10011335696

Chasing the smokestack: Strategic policymaking with multiple instruments

Fredriksson, Per G.; List, John A.; Millimet, Daniel L. - 2002

Recent studies suggest a considerable amount of horizontal strategic interaction amongst governments exists. The empirical approach in these studies typically relies on estimating reaction functions in a uni-dimensional policy framework, where a nonzero slope estimate suggests strategic...

Persistent link: https://www.econbiz.de/10011335710

A theory of strategic vertical DFI and the missing pollution-haven effect

Yu, Zhihao - 2002

This paper develops a theory of strategic vertical DFI (direct foreign investment) to suggest an explanation for the …-haven effects based on environmental compliance costs might be complicated by such strategic behaviour. The theory provides … particular implications for the empirical research in this area and some broader implications for the theory of DFI. …

Persistent link: https://www.econbiz.de/10011335715

Cost heterogeneity and the potential savings from market-based policies

Newell, Richard G.; Stavins, Robert N. - 2002

Policy makers and analysts are often faced with situations where it is unclear whether market-based instruments hold real promise of reducing costs, relative to conventional uniform standards. We develop analytic expressions that can be employed with modest amounts of information to estimate the...

Persistent link: https://www.econbiz.de/10011335717