Location of Repository

Investment subsidies and time-consistent environmental policy

By Lisandro Abrego and Carlo Perroni

Abstract

We describe a model of dynamic poluution abatement choices with heterogeneous agents, where, due to the presence of a distributional objective and to the absence of incentive-compatible compensation mechanisms, the choice of a second-best level of emission taxation is time-inconsistent. In this model, we investigate whether investment subsidies can act as a substitute for policy commitment

Topics: HJ
Publisher: University of Warwick, Department of Economics
Year: 1999
OAI identifier: oai:wrap.warwick.ac.uk:1646

Suggested articles

Preview

Citations

  1. (1992). A Carbon Tax to Reduce CO2 Emissions in Europe," doi
  2. (1998). A Second-Best Analysis of Environmental Subsidies,"
  3. (1993). An Optimal Tax/Subsidy for Output and Pollution Control under Asymmetric Information in Oligopoly Markets," doi
  4. (1994). Applying Economic Instruments to Environmental Policies in OECD and Dynamic Non-Member Economies. doi
  5. (1992). Carbon Taxes and Economic Welfare,"Brookings Papers of Economic Activity, Microeconomics Issue: doi
  6. (1980). Dynamic Inconsistency, Cooperation and the Benevolent Dissembling Government," doi
  7. (1995). Dynamic Pollution Regulation," doi
  8. (1997). Earmarking of Environmental Taxes: E±cient After All," mimeo,
  9. (1981). Electoral Outcomes with Probabilistic Voting and Nash Social Welfare Maxima," doi
  10. (1995). Endogenous Capital Utilization, Investor's E®ort, and Optimal Fiscal Policy," doi
  11. (1992). Fiscal Policies to Control Pollution: International Experience,"
  12. (1996). Induced Technical Change, Scienti¯c Advance and the E±cient Control of Pollution."
  13. (1999). Markets and Regulatory Hold-Up Problems," doi
  14. (1997). Political Uncertainty and the Earmarking of Environmental Taxes." mimeo, doi
  15. (1990). Sustainable Plans," doi
  16. (1991). Tax Policy to Combat Global Warming: On Designing a Carbon Tax," doi
  17. (1998). The E®ect of New Technology on Energy Consumption,"
  18. (1993). The European Carbon Tax: An economic Assessment. doi
  19. (1988). The Theory of Environmental Policy. Cambridge: doi
  20. (1997). Time Consistent Taxation by a Government with Redistributive Goals," doi
  21. (1998). Time Inconsistency in Environmental Policy: Tax Earmarking as a Precommitment Solution," mimeo, doi
  22. (1999). What to Tax: Emissions or Polluting Goods?" mimeo,

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.