Instrument choice for environmental protection when technological innovation is endogenous

被引:240
作者
Fischer, C [1 ]
Parry, IWH [1 ]
Pizer, WA [1 ]
机构
[1] Resources Future Inc, Washington, DC 20036 USA
关键词
technological innovation; externalities; environmental policies; welfare impacts;
D O I
10.1016/S0095-0696(03)00002-0
中图分类号
F [经济];
学科分类号
02 ;
摘要
This paper compares, qualitatively and quantitatively, the welfare effects of emissions taxes, auctioned emissions permits, and free (grandfathered) permits, when technological innovation is endogenous. We find that there is no unambiguous case for preferring any of these policy instruments. The relative welfare ranking of instruments depends on the costs of innovation, the extent to which innovations can be imitated, the slope and level of the marginal environmental benefit function, and the number of polluting firms. We illustrate the types of situations when there can be significant welfare discrepancies between the policies and when there are not. (C) 2003 Published by Elsevier Science (USA).
引用
收藏
页码:523 / 545
页数:23
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