TAXES AND QUOTAS FOR A STOCK POLLUTANT WITH MULTIPLICATIVE UNCERTAINTY

Michael Hoel and Larry Karp

No 25030, CUDARE Working Papers from University of California, Berkeley, Department of Agricultural and Resource Economics

Abstract: We compare taxes and quotas when firms' and the regulator have asymmetric information about the slope of firms' abatement costs. Damages are caused by a stock pollutant. We calibrate the model using cost and damage estimates of greenhouse gasses. Taxes dominate quotas, as with additive uncertainty. This model with multiplicative uncertainty allows us to compare expected stock levels under the two policies, and to investigate the importance of stock size and the magnitude of uncertainty on the policy ranking.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 39
Date: 2000
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Taxes and quotas for a stock pollutant with multiplicative uncertainty (2001)
Working Paper: Taxes and Quotas for a Stock Pollutant with Multiplicative Uncertainty (2000)
Working Paper: Taxes and Quotas for a Stock Pollutant with Multiplicative Uncertainty (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ucbecw:25030

DOI: 10.22004/ag.econ.25030

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