Pigovian tax. In particular, earmarking prevails and actual taxes are usually combined with regulation. Furthermore tax rates … explain these design parameters: The tax rate, earmarking pattern and whether the tax is combined with a regulation. An … incumbent government selects these parameters under the influence of a green and a polluters' lobby groups. An earmarked tax is …

-consistency properties of a Pigouvian emissions tax and of emissions trading, Kennedy and Laplante find that: · If damage is linear … technology, depending on the cost of adoption. The first-best tax policy and the first-best permit-supply policy are both time … this case, the first-best tax policy is not time-consistent and the tax rate must be adjusted after adoption has taken …

of firms, Believers, who take the tax announcements made by the Regulator to face value, and Non-Believers, who perfectly … on the relative profits of both groups. We show that the Regulator can use misleading tax announcements to steer the …