Dragone, D.; Lambertini, L.; Leitmann, G.; Palestini, A. - Dipartimento di Scienze Economiche, Alma Mater … - 2009
We model a dynamic monopoly with environmental externalities,investigating the adoption of a tax levied on the firm's instantaneous contribution to the accumulation of pollution. The latter process is subject to a shock, which is i.i.d. across instants. We prove the existence of an optimal tax...