Benchekroun, Hassan; Long, Ngo Van - Centre Interuniversitaire de Recherche en Analyse des … - 1997
stock of pollution that accumulates over time. In our model, firms play dynamic Cournot games among themselves, and the … production path. The optimal tax per unit of output is dependent on the current level of pollution stock, and it may be negative … (implying a subsidy) when the pollution stock is low. We obtain a rather surprising result: in some cases, the optimal tax rule …