We investigate how crackdowns on regulatory enforcement dynamically influence firm behavior by linking the timing of centralized dispatch of environmental inspectors to cities in China with high-frequency observations of air pollution at coal power plants. During weeks when inspection teams are...

This paper examines pollution tax differentiation across industries in light of social equity concerns using theoretical and numerical general equilibrium analyses in an optimal tax framework. We characterize the drivers for non-uniform optimal taxes emanating from the interaction of household...