The Pigouvian prescription for pollution damage requires a per-unit tax equal to the monetary value of marginal external cost (MEC). However, in this tradition, few economists have proposed a damage-based mechanism to regulate hazardous waste. Using damage scores from the Waste Minimization...

In a policy of revenue substitution, the State of New York could increase tax system efficiency while improving environmental quality. Revenue from a state environmental tax on chemical emissions could be used to eliminate pre-existing taxes on business activity. This paper simulates policy...

The principal reason why economists have advocated environmental policies based on incentives is that their conception of business behavior derives from the neoclassical model of the firm. Businesses certainly do respond to profit incentives, but firms' behavior is also greatly influenced by...