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"Prices versus quantities" (Weitzman 1974), a hugely influential paper, is widely cited (and taught) in current debates about the best policy to reduce greenhouse gas emissions. The paper's criterion for ranking policies suggests that technological uncertainty favors taxes over cap and trade....
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regulation. Guided by restrictive legislative mandates, regulatory policies often strike a quite different balance with an … policy efforts. Inadequate regulatory enforcement and behavioral responses to regulation may limit their effectiveness, while …
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