This paper makes some steps toward a formal political economy of environmental policy. Economists' quasi-unanimous preferences for sophisticated incentive regulation is reconsidered.

We consider the problem of the optimal use of a good whose consumption can produce damages in the future. Potential damages are proportional to the accumulated lifetimeconsumption of the good. Scientific progress is made over time that provides information on the distribution of the intensity of...

This paper analyzes environmental labeling strategies in a duopoly market. We consider a three-stage game where firms successively choose their production technology, label signal and price. The willingness to pay for the environmental quality is explained by an altruistic parameter as consumers...