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...

The unprecedented deterioration of our global environment has increased the necessity of relying upon Green Economic policies as critical and effective environmental management tools. The current situation has stimulated extensive research and debate among global interest groups. This has...

The ecological literature suggests that biodiversity reduces the variance of ecosystem services. Thus, conservative biodiversity management has an insurance value to risk-averse users of ecosystem services. We analyze a conceptual ecological-economic model in which such management measures...

There is a widespread consensus among the most important players in developed countries (voters, politicians, producers, traditional and green interest groups and bureaucracies) that a shift towards an eco-social market economy is essential for sustainable growth. Nevertheless, market-based...

This essay revisits the question of instrument choice for the regulation of externalities in the context of climate change. The central point is that the Pigouvian prescription to equate marginal control costs with the expected marginal benefits of damage reduction should guide the design of...

The ecological literature suggests that biodiversity reduces the variance of ecosystem services. Thus, conservative biodiversity management has an insurance value to risk-averse users of ecosystem services. We analyze a conceptual ecological-economic model in which such management measures...

Under capital tax competition, surprisingly, Ogawa and Wildasin (2009, American Economic Review, 99(4), 1206-1217) find that uncoordinated policymaking leads to a first-best outcome even in the presence of transboundary pollution.However, I show that if the level of environmental regulation is...

We propose a novel mechanism for coalitional policies in a climate coalition. In our proposed setup, national (unilateral) and federal (multinational) emission policies coexist. A joint federal institution, appointed by all members, sets a joint emission policy for its members and must attain...

This paper examines the economic and political implications of two market-based policies, eco-certifications and emission taxes. We evaluate each policy's effects on the environment, investment in clean technology, and social welfare under imperfect competition. We find that eco-certification...

Nitrogen management policies introduced in the past decades by some OECD countries have succeeded in reducing excess nitrogen use by farmers, but half of global mineral fertiliser use is still lost for crops. While about half of OECD countries have nutrient surpluses of between 25-50 kg N per...