optima. First, there is an Internality Dividend from Externality Taxes: aside from reducing externalities, they also offset … taxes, the optimal policy will tend to involve an energy tax below marginal damages coupled with a larger subsidy for energy …

In recent years, cases in which state governments chose to override federal environmental regulation with tighter … paper argues that this change arose at least in part because of a shift in the type of regulation used at the federal level …, from command-and-control regulation toward more incentive-based regulation. Under an incentive-based federal regulation, a …

This essay revisits the question of instrument choice for the regulation of externalities in the context of climate … benefits of damage reduction should guide the design of both carbon taxes and permit schemes. Because expected marginal damage …

This paper considers the question of under what circumstances a new environmental regulation should "phase in … in a quantity-based regulation (or allowing intertemporal flexibility that creates the equivalent of a phase-in), this … argument does not apply for price-based regulation. Indeed, in many cases, it will be more efficient to do just the opposite …