-period game in which the government of each period chooses consumption as a flow variable that adds to a stock of pollution. In …

In the past 15 years, incentive-based environmental policy instruments, such as pollution taxes and tradeable pollution … proposes a positive theory of environmental instrument choice that can be used to explain this trend. We imagine a democratic … society that seeks to lower the level of pollution from industrial production to a pre-specified target. The target can be …

In actual environmental policy, the design of actual pollution emission taxes differs significantly with the optimal …