We consider a policy environment in which an entire industry is faced with possible imposition of an emissions tax if environmental goals are not met voluntarily. We develop a multiple-firm model of pollution abatement in this context. Using the concept of a self-enforcing equilibrium, we...

Stated preference surveys often provide ambiguous descriptions of ecological commodities, yielding welfare estimates that have unclear interpretations and cannot be linked to measurable outcomes. This paper proposes guidelines to promote ecological content validity in survey scenarios and...

This paper considers how transferring some or all future responsibility for cleanup of a contaminated site affects the current owner's incentives to reduce contamination, given that he anticipates selling his property in the future. The results depend on the probabilities that the parties will...

Unfunded mandates are orders imposed by higher level governments on lower-level governments without providing the funds necessary for implementation. We highlight the following trade-off associated with unfunded mandates: on the one hand, no funding creates a risk of over-regulation by the...