creates an opportunity to study how environmental regulation affects the location of economic activity, the externality costs …Research on environmental regulation’s effects on economic activity has largely focused on manufacturing, ignoring one …, regulation has become an important criterion in firm location. This article extends the literature on environmental regulation …

costs, we uncover several important principles governing the choice of price-based policies (e.g., taxes) relative to … externality continue to be critical determinants of the efficiency of prices relative to quantities, with flatter marginal … externality therefore weighs heavily in favor of price instruments for their control, so long as the optimal control falls short …

negative externality (higher effort decreases theexpected future quality of the asset) case: it is enough for the principal … tocommit to reallocate the right to use the asset at the end of the first period.In the positive externality case (when higher …

We analyze the effects of a domestic standard that reduces an externality associated with the consumption of the good … can reduce expected damage associated with the externality by incurring a cost that varies by source of origin. Despite … potential protectionism, the standard is useful in correcting the consumption externality in the domestic country. Protectionism …