In the environmental policy of most countries, various forms of quotas and direct regulation are more important than environmental taxes. This paper addresses four arguments which are often given against the use of emission taxes. The three arguments related to information asymmetries and...

This paper deals with the employment effects of reduced working time when firms' endogenous response of overtime is considered. The anal ysis distinguishes between fixed and profit-maximizing levels of outp ut as well as between interior and corner solutions. It is shown that under plausible...

In a game between the governments of two countries, each chooses its own environmental policy. The Nash equilibria of the game are generally not Pareto optimal. On the one hand, each country may want to attract industry, giving it an incentive to choose low environmental taxes or standards. On...

When pollution is transboundary and there is international trade, a domestic inefficiency may arise in addition to the well-known inefficiencies at the international level. More precisely, there will be a Nash equilibrium in which each country chooses a policy that gives it lower welfare than...