Fadaee, Mehdi; Lambertini, Luca - In: Environmental economics and policy studies 17 (2015) 1, pp. 27-42
Profit-seeking firms can be induced to internalise the environmental damages caused by production via several policy instruments, a widely used one being emission permits. In a very influential paper, Laffont and Tirole (J Public Econ 62:127-140, 1996) point out that the allocation of pollution...