Stranlund, John K.; Chavez, Carlos A.; Villena, Mauricio G. - 2007
costs, the costs of monitoring them for compliance, or the costs of collecting penalties from noncompliant firms. Moreover …We consider the pricing of a uniformly mixed pollutant when enforcement is costly with a model of optimal, possibly … firm-specific, emissions taxes and their enforcement. We argue that optimality requires an enforcement strategy that …