Antoniou, Fabio; Hatzipanayotou, Panos; Koundouri, Phoebe - In: Southern Economic Journal 78 (2012) 3, pp. 1019-1040
Governments use environmental policies, such as an emissions standard or a tax, to control pollution and for rent shifting purposes. Contrary to firms, however, governments are unable to perfectly foresee the actual level of demand and the cost of abatement. Our results suggest that not only the...