EconPapers    
Economics at your fingertips  
 

Emissions intensity and choice of policy instrument with asymmetric information and growth

Douglas Auld

Journal of Environmental Economics and Policy, 2016, vol. 5, issue 2, 227-235

Abstract: The advantages and disadvantages of environmental policies based on emission intensity targets have been widely discussed. Emission tax policies tend to be ranked ahead of emission intensity instruments due, in part, to the former's incentive effects. A comparison of the effect that emission intensity targets and emission taxes have on abatement costs in a world of asymmetric information is worth exploring. This analysis suggests that in terms abatement costs and the nature of the errors due to asymmetric information, a tax on emission has no absolute advantage over an emissions intensity policy in the short run and given the qualitative nature of the welfare losses in both cases, an emissions target policy may be preferred. Furthermore, an emission intensity target may be an appropriate instrument when growth in output of polluting firms is expected.

Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/21606544.2015.1080197 (text/html)
Access to full text is restricted to subscribers.

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:taf:teepxx:v:5:y:2016:i:2:p:227-235

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/teep20

DOI: 10.1080/21606544.2015.1080197

Access Statistics for this article

Journal of Environmental Economics and Policy is currently edited by Ken Willis

More articles in Journal of Environmental Economics and Policy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2024-07-04
Handle: RePEc:taf:teepxx:v:5:y:2016:i:2:p:227-235