A politically realistic approach to environmental policy seems to require avoiding significant profit-losses in major pollution-related industries. The government can avoid such losses by freely allocating some emissions permits or by exempting some inframarginal emissions from a pollution tax....

The corporate’s emission reduction activities are closely influenced by government policies. This paper analyzes the effect of a hybrid carbon policy, which means a combination of carbon tax and cap-and-trade policies, on the manufacturer’s carbon abatement activities and supply chain...

Overview -- Production Planning and Cap-Setting under Cap-And-Trade Regulation Considering Differentiated Emission Trading Prices -- A Two-period Carbon Tax Regulation for Manufacturing and Remanufacturing Production Planning -- A Joint Analysis of the Environmental and Economic Performances of...

It is well known that a consumer price-neutral reform of consumption taxes and import tariffs is welfare-improving. This paper shows that such price controls are inferior to quantity controls in terms of welfare improvement. The paper next turns to a comparison of different abatement strategies....

The effects of two environmental policy options for the reduction of pollution emissions, i.e. taxes and non-tradable quotas, are analyzed. In contrast to the prior literature this work endogenously takes into account the level of emissions before and after the adoption of the new environmental...