We derive a theoretically consistent welfare measure that is to be interpreted as a "green" net national product (NNP). In our framework, environmental deterioration is modelled as an undesirable, but inherent by-product of economic activities consuming the resource base. A major advantage of...

This paper investigates the effect of credibility of environmental policies on environmental innovation and welfare. When the government precommits to an emission tax, the monopolist's abatement effort is lower than if the environmental policy is at the government's discretion. Time consistent...

The paper uses an applied general equilibrium model, calibrated to the situation in Belgium in 1990, to evaluate the welfare effects of small policy changes in the presence of transport externalities. The model incorporates three types of externalities: congestion, which has a feedback effect on...

The paper explores the hypothesis of a double dividend from environmental taxation i.e. whether shifting the burden of taxation away from labour toward the environment can boost employment and increase welfare. We present a general-equilibrium model where the economy is distorted by labour...

We explore the effects of environmental taxes that imprecisely target pollution. A review of actual policies indicates few (if any) examples of a true tax on pollution. More typically, environmental taxes target an input or output that is correlated with pollution. We construct a simple...

In this paper we consider Voluntary Agreements (VAs) as an information-sharing device. In a duopoly model firms compete à la Cournot and aim to reduce environmental damages because consumers have green preferences that partially internalise negative externalities. However both firms are...

Increasingly popular tailored regulation (TR) initiatives like EPA's Project XL allow plants to voluntarily substitute site-specific environmental performance standards for command-and-control regulations that dictate pollution abatement strategies. TR can significantly reduce participants'...

An increasingly popular instrument for solving environmental problems is the "public voluntary agreement (VA)", in which government offers modest technical assistance and positive publicity to firms that reach certain environmental goals. Prior papers treat such agreements as a superior,...

We reconsider some analytical arguments on the double dividend, focusing on the small open developing economy case. Compared with the large, mature industrial economies usually considered, such economies differ in several respects, including the structure of tax revenues, commodity pricing and...

This paper examines the theoretical foundations of Green National Accounting, noting that their assumptions have led to green national income measuring welfare-based income, which is not necessarily equal to sustainable income. We review two major approaches to estimating green accounting: the...