Preventing environmental disasters: market based vs command and control policies

Francesco Lamperti (), Mauro Napoletano and Andrea Roventini

No 2015-31, Documents de Travail de l'OFCE from Observatoire Francais des Conjonctures Economiques (OFCE)

Abstract: The aper compares the e?ects of market-based and command-and-control climate policies on the direction of technical change and the prevention of environmental disasters. Drawing on the model proposed in Acemoglu et al. (2012, American Economic Review), we show that market-based policies (carbon taxes and subsidies towards clean sectors) exhibit bounded win- dow of opportunities: delays in their implementation make them completely ine?ective both in redirecting technical change and in avoiding environmental catastrophes. On the contrary, we ?nd that command-and-control interventions guarantee policy e?ectiveness irrespectively on the timing of their introduction. As command-and-control policies are always able to direct technical change toward "green" technologies and to prevent climate disasters, they constitute a valuable alternative to market-based interventions

Keywords: Environmental Policy; Command and Control; Carbon Taxes; Disasters (search for similar items in EconPapers)
JEL-codes: O33 O44 Q30 Q54 Q56 Q58 (search for similar items in EconPapers)
Date: 2015-12
New Economics Papers: this item is included in nep-agr, nep-ene, nep-env and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Preventing environmental disasters: Market based vs command and control policies (2015)
Working Paper: Preventing environmental disasters: Market based vs command and control policies (2015)
Working Paper: Preventing Environmental Disasters: Market-Based vs. Command-and-Control Policies (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:fce:doctra:1531

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