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We show that, in a model without commitment to future policies, geoengineering breakthroughs can have adverse environmental and welfare effects because they change the (equilibrium) carbon taxes. In our model, energy producers emit carbon, which creates a negative environmental externality, and...
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For political, jurisdictional and technical reasons, environmental regulation of industrial pollution is often … incomplete: regulations apply to only a subset of facilities contributing to a pollution problem. Policymakers are increasingly …. In a straightforward application of the theory of the second best, I show that incomplete regulation can welfare dominate …
Persistent link: https://www.econbiz.de/10012769643
For political, jurisdictional and technical reasons, environmental regulation of industrial pollution is often … incomplete: regulations apply to only a subset of facilities contributing to a pollution problem. Policymakers are increasingly …. In a straightforward application of the theory of the second best, I show that incomplete regulation can welfare dominate …
Persistent link: https://www.econbiz.de/10012464226
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This paper concerns optimal emissions of greenhouse gases when catastrophic consequences are possible. A numerical model is presented which takes into account both continuous climate-feedback damages as well as the possibility of a catastrophic outcome. The uncertainty in the model concerns...
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