The effects of two environmental policy options for the reduction of pollution emissions, i.e. taxes and non …'s profit maximization problem under taxes and fixed quotas. We find that the optimal adoption threshold under taxes is always …

, environmental taxes and auctioned permit schemes are equally appropriate. In the presence of uncertainty, however, the efficient … choice of taxes or permits depends on the relative magnitudes of the marginal environmental damages and the marginal benefits …

instruments: pollution taxes, pollution permits and Kyoto-like numerical rules for emissions. The setup is the basic stochastic … pollution taxes and use the collected tax revenues to finance public abatement. However, when environmental uncertainty is the … pollution taxes …

uncertainty is economic, the best recipe is to levy taxes (on pollution or output) and use the collected tax revenues to finance … for emissions, being combined with tax-financed public abatement, are better than taxes. Finally, comparing pollution and … output taxes, the latter are better …