Acquired wisdom has it that the allocation of pollution rights to firms hinders their willingness to undertake … choose whether to participate in a lottery to attain pollution permits, or instead invest in green R&D, to show that …, somewhat counterintuitively, a desirable side effect of the pollution permit is in fact that of fostering environmental R&D in …

:127–140, <CitationRef CitationID="CR18">1996</CitationRef>) point out that the allocation of pollution rights to firms may hinder their …

and cumulative externalities and proposes an appropriate corrective tax. It concludes that mineral resources taxation …

The paper studies the setting of optimal fiscal policy in a second-best world with environmental externalities. The … optimal second-best pollution tax is shown to lie below the first-best Pigovian tax, particularly if substitution between …