This paper investigates the effect of credibility of environmental policies on environmental innovation and welfare. When the government precommits to an emission tax, the monopolist's abatement effort is lower than if the environmental policy is at the government's discretion. Time consistent...

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...