Newell, Richard; Pizer, William; Zhang, Jiangfeng - In: Environmental & Resource Economics 31 (2005) 2, pp. 133-157
The political economy of environmental policy favors the use of quantity-based instruments over price-based instruments (e.g., tradable permits over green taxes), at least in the United States. With cost uncertainty, however, there are clear efficiency advantages to prices in cases where the...