harmful externalities, its actual use has been limited, mainly to the domain of pollution. Liability, in contrast, has great … importance in controlling harmful externalities. I compare the tax and liability here in theory and suggest that the conclusions … help to explain the observed predominance of liability over taxation, except in the area of pollution. The following …

Taxation and liability are compared here as means of controlling harmful externalities. It is emphasized that liability …

technologies which reduce the cost of pollution abatement. The innovating firm can patent this innovation and use a licensing fee … a pollution tax or a marketable permit. However, the returns to the innovator from innovation are not the same under the …

pollution regulation. However, these studies have made restrictive assumptions regarding individual preferences and have ignored … key links between pollution, human health, and labor productivity. Together, these assumptions imply that the benefits of … that when the benefits of reduced pollution come in the form of improved health or productivity, the benefits do affect …

negotiations are feasible and side payments are based on the realized level of externalities. Results show that an increase in …

industrialization. Will pollution continue to increase without bound as more and more countries pass through the development phase or …-regulating' in the sense that as income increases, pollution controls also increase. However, this intuition is somewhat misleading … rate of development of the economy through market interactions and the extent of pollution regulation through collective …