We explore the design of self-financing tax-subsidy schemes to solve hold-up problems in environmental regulation. The … announcement of the tax rate seems to be preferable to solve hold-up problems with respect to the investment in environmental R … social welfare than the announcement of the tax rate or the standard emission taxation if the marginal damage of emissions …

We consider the application of self-financing tax/subsidy mechanisms in environmental regulation and explore the … turns out that the tax/subsidy mechanism with the announcement of the subsidy rate and the tax/subsidy mechanism with the … announcement of the tax rate work for an arbitrary number of firms, which means that they yield strong incentives for investing in …