Investment Policy for New Environmental Monitoring Technologies to Manage Stock Externalities

Katrin Millock (), Angels Xabadia and David Zilberman
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Katrin Millock: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: With the development of modern information technologies, relying on nanotechnologies and remote sensing, a number of systems can be envisaged that allow for monitoring of the negative externalities generated by producers, consumers or travelers - road pricing schemes or individual emission meters for automobiles are two examples. In the paper, we analyze a dynamic model of stock pollution when the regulator has incomplete information on emissions generated by heterogeneous agent. The paper's contribution is to explicitly study a decentralized policy for adoption of monitoring equipment over time. Each agent has to choose between paying a fixed fee or installing monitoring technology and paying a tax on actual emissions. We determine the second-best tax rates, the pattern of monitoring technology adoption, and identify conditions for the voluntary diffusion of monitoring technologies over time.

Keywords: Externalities; environmental taxation; monitoring technology adoption; diffusion; nanotechnologies; Externalités; taxe environnementale; adoption de technologies de mesure; nano-technologies (search for similar items in EconPapers)
Date: 2009-01
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00367888v1
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Published in 2009

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Related works:
Working Paper: Investment Policy for New Environmental Monitoring Technologies to Manage Stock Externalities (2009)
Working Paper: Investment Policy for New Environmental Monitoring Technologies to Manage Stock Externalities (2009)
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