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Stranlund, John K.. |
Most of the theoretical literature on enforcing environmental policies focuses on situations in which pollution sources are noncompliant. However, some recent work suggests that these situations will very often involve suboptimal policy designs. Thus, the circumstances under which it is efficient to implement policies that do not motivate full compliance appear to be more limited than most of the literature would imply. In this paper, I identify several circumstances under which regulators may conserve enforcement costs by implementing emissions taxes that firms evade. I demonstrate that a regulator can use a firm’s tax evasion to reduce monitoring effort, but only if its monitoring strategy can be made an increasing function of the firm’s emissions, if... |
Tipo: Working or Discussion Paper |
Palavras-chave: Compliance; Enforcement; Emissions Taxes; Monitoring; Sanctions; Uncertainty; Environmental Economics and Policy; Public Economics; L51; Q58. |
Ano: 2010 |
URL: http://purl.umn.edu/93967 |
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Stranlund, John K.; Chavez, Carlos A.; Villena, Mauricio G.. |
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 induces full compliance by every firm. This holds whether or not regulators have complete information about firms’ abatement costs, the costs of monitoring them for compliance, or the costs of collecting penalties from noncompliant firms. Moreover, ignoring several unrealistic special cases, optimality requires discriminatory emissions taxes except when regulators are unable to observe firms’ abatement costs, the costs of monitoring individual firms, or any firm-specific characteristic that is known to be jointly distributed... |
Tipo: Working or Discussion Paper |
Palavras-chave: Compliance; Enforcement; Emissions Taxes; Monitoring; Asymmetric Information; Uncertainty; Environmental Economics and Policy; L51; Q58. |
Ano: 2007 |
URL: http://purl.umn.edu/7387 |
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