A small open economy operates a carbon emission trading scheme and subsidizes green energy. Taking cap-and-trade as given, we seek to explain the subsidy as the outcome of a trilateral tug of war between the "green" energy industry, the "black" energy industry and consumers. With parametric...

The basic focus of this paper is to look at ecological tax reform from a public good perspective rather than from a Pigouvian externality cum tax reform perspective. Our point of departure is the insight, aptly expressed by Heller and Starrett (1976, p. l 0), e. g., that "one can think of...

This paper deals with two different types of irreversibility: Pollution irreversibility occurs if the stock of pollution cannot be reduced (any more) by nature's assimilative capacity; characteristics irreversibility occurs when some characteristic of the environmental resource is irreversibly...

In the environmental economics literature the standard approach of modeling nonlinear production and abatement processes is to treat waste emissions "simply as another factor of production" (Cropper and Oates 1992). That approach doesn't map the materials flow involved completely and hides,...