Correlated uncertainty and policy instrument choice

被引:182
作者
Stavins, RN [1 ]
机构
[1] RESOURCES FUTURE INC,WASHINGTON,DC 20036
关键词
D O I
10.1006/jeem.1996.0015
中图分类号
F [经济];
学科分类号
02 ;
摘要
For two decades, environmental economists have generally maintained that benefit uncertainty is irrelevant for choosing between price and quantity instruments, but that cost uncertainty matters, with the identity of the efficient instrument depending upon the relative slopes of the marginal benefit and cost functions. But, in the presence of simultaneous, correlated uncertainty, such policy instrument recommendations may be inappropriate. With plausible values of relevant parameters, the conventional identification of a price instrument will be reversed, to favor instead a quantity instrument. The opposite reversal-from the choice of a quantity instrument to a price instrument-seems less likely to occur. (C) 1996 Academic Press, Inc.
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页码:218 / 232
页数:15
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