Environmental efficiency of price and quantity policies

Hsiao-chi Chen () and Shi-miin Liu ()
Additional contact information
Hsiao-chi Chen: Department of Economics, National Taipei University
Shi-miin Liu: Department of Economics, National Taipei University

Economics Bulletin, 2018, vol. 38, issue 3, 1514-1522

Abstract: Under the set-up of Weitzman (1974), we examine the relative environmental efficiency of price (i.e., emission tax) and quantity (i.e., emission cap) policies given the expected net benefits of emissions no less than some fixed value. We discover that quantity policies are more environmentally efficient than price policies regardless of relative steepness of emissions' marginal benefit and marginal cost functions. However, if the constraint of minimum expected net benefits of emissions is not considered, both price and quantity policies are equally efficient.

Keywords: environmental efficiency; emission cap; emission tax. (search for similar items in EconPapers)
JEL-codes: Q5 (search for similar items in EconPapers)
Date: 2018-08-05
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I3-P143.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-17-00944

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().