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I model environmental overcompliance as a signalling device. In the model, a benevolent government may or may not …
Persistent link: https://www.econbiz.de/10011608640
We consider a simple dynamic model of environmental taxation that exhibits time inconsistency. There are two categories of firms, Believers, who take the tax announcements made by the Regulator to face value, and Non-Believers, who perfectly anticipate the Regulator's decisions, albeit at a...
Persistent link: https://www.econbiz.de/10011325007
Environmental policy often has to be devised under informational constraints, like uncertainty and asymmetric information. We consider an environmental policy that aims at reducing the welfare losses caused by asymmetric information while being sufficiently simple for implementation. In this...
Persistent link: https://www.econbiz.de/10011390636
The purpose of the paper is to narrow the gap between the widespread use of voluntary agreements and research on the rationale of such approaches. A typical example are voluntary agreements of many industries to reduce carbon dioxide emissions because of global warming. If the industry...
Persistent link: https://www.econbiz.de/10011608503
-firm pollution alleviate the tendency of firms to delocate into the region with the weaker regulation; then, a deregulatory race to …
Persistent link: https://www.econbiz.de/10010319313
We analyze the formation of environmental policy to regulate transboundary pollution if governments are self … be too high if environmental interests and pollution-intensity of production are very strong; under different …
Persistent link: https://www.econbiz.de/10010286619
In a market environment with random detection of product quality, a firm can employ umbrella branding as a strategy to convince consumers of the high quality of its products. Alternatively, a firm can rely on external certification of the quality of one or both of its products. We characterize...
Persistent link: https://www.econbiz.de/10010264839
Candidates compete to persuade a decision maker. The decision maker wishes to select a candidate who possesses a certain ability. Then, as a signaling, each candidate decides whether to perform a task whose performance statistically reflects the ability. However, since the cost of the...
Persistent link: https://www.econbiz.de/10010281680
In this paper we study international river pollution problems. We introduce a model in which the agents (countries …) located along a river derive benefit while causing pollution, but also incur environmental costs of experiencing pollution … from all upstream agents. We find that total pollution in the model decreases when the agents decide to cooperate. The …
Persistent link: https://www.econbiz.de/10010326271
We use a two-issue bargaining model with asymmetric information to study agent choice of how to structure bargaining. We uncover the settings in which different agenda structures are chosen in equilibrium, how the order in which issues are bargained over matters, and what impact the rules for...
Persistent link: https://www.econbiz.de/10010291973