How many instruments should be used to address a particular environmental problem? That is the question this article addresses. According to the "Tinbergen rule," one instrument per target is needed. The existence of any non-environmental market failures affecting the environmental problem at...

This paper looks at how contemporary environmental (including climate) policy problems are phrased in terms of effectiveness, efficiency, and equity. The latter three concepts have served as foci of theoretical discussions among economists who analyse these issues and identify criteria that...

This paper reviews the theoretical and empirical literature connected to the so called Porter Hypothesis. That is, to review the literature connected to the discussion about the relation between environmental policy and competitiveness. According to the conventional wisdom environmental policy,...

This paper reviews the theoretical and empirical literature connected to the so-called Porter hypothesis; that is, it reviews the literature connected to the relation between environmental policy and competitiveness. According to the conventional wisdom environmental policy, aiming for improving...

We compare two tradable permit markets in their ability to meet a safety first environmental target at least cost when some polluters have stochastic, correlated, and non-measurable emissions. In both markets, the point source permit defines the allowable level of the observed (deterministic)...

We study an environmental policy that (i) tax some emitters while others are covered by a cap-and-trade system and (ii) index the tax level to the permit price. Such a policy could be attractive in a world where abatement costs are uncertain and the regulator has information about the...

Economists have long been interested in explaining the spatial distribution of economic activity, focusing on what factors motivate profit-maximizing firms when they choose to open a new plant or expand an existing facility. We begin our paper with a general discussion of the theory of plant...

Climate change due to emissions from fast growing developing economies of Asia is sounding an alarm bell for policymakers not only in Asia, but also in the world. This situation raises the urgent need for undertaking measures to control emissions with due consideration of the prevailing...

Many environmental problems, notably arising from agriculture, can be classified as non-point source pollution problems. In this paper we present results of an experimental study on the performance of three mechanisms designed to deal with such problems: collective fining, random fining, and a...

Environmental challenges, and the potential solutions to address them, have a direct effect on living standards, the organization of economies, major infrastructures, and modes of urbanization. Since the publication of path-breaking contributions on the governance of environmental resources in...