Under the Kyoto Protocol to the Climate Convention Parties may participate in international emissions trading. For individual Parties this raises the question of whether to implement domestic emissions trading regimes in order to ease the transition process to an international regime. The...

We study long-term incentives for polluting and regulated firms to invest in advanced abatement technologies, when some new technology is available but an even better technology will be expected in the future. Firms can invest only once. We find that depending on the adoption fixed costs all...

In this article I survey the theoretical literature on environmental policy in the presence of imperfect competition, ranging from early contributions in the 1960s to the present. I cover the following market structures when polluting firms have market power in the output market: monopoly,...

In this paper we present results of an experimental study on the performance of three mechanisms which are designed to deal with non-point source pollution: collective fining, random fining, and a tax-subsidy scheme. Our results show that collective and random fining schemes do not induce the...