We examine the choice of policy instruments (price, quantity or a mix of the two) when two pollutants are regulated and firms' abatement costs are private information. Whether abatement efforts are complements or substitutes is key determining the choice of policies. When pollutants are complements, a mixed policy instrument with a tax on one pollutant and a quota on another is sometimes preferable even if the pollutants are identical in terms of benefits and costs of abatement. Yet, if they are substitutes, the mixed policy is dominated by taxes or quotas. (C) 2012 Elsevier Inc. All rights reserved.
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机构:
Energy Res Ctr Netherlands, ECN, Policy Studies Dept, NL-1040 AW Amsterdam, Netherlands
Columbia Univ, Lenfest Ctr Sustainable Energy, Earth Inst, New York, NY 10027 USANetherlands Environm Assessment Agcy, PBL, NL-3720 AH Bilthoven, Netherlands
机构:
Energy Res Ctr Netherlands, ECN, Policy Studies Dept, NL-1040 AW Amsterdam, Netherlands
Columbia Univ, Lenfest Ctr Sustainable Energy, Earth Inst, New York, NY 10027 USANetherlands Environm Assessment Agcy, PBL, NL-3720 AH Bilthoven, Netherlands