The paper explores the performance of decentralized incentives when abatement involves technological indivisibilities. Technologically, pollution abatement is often carried out as a discrete process, if pollution reduction involves relatively large-scale investments in emission abatement...

This paper proposes, for different water scarcity conditions, a cost efficient input tax policy to supply clean drinking water that is subject to contamination by nitrogen fertiliser and to quantify the welfare change due to this public control. By introducing a transaction cost component, we...