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Taxation of Emissions and Induce Investment

Amihai Glazer

Working Papers from California Irvine - School of Social Sciences

Abstract: Government often appears to have the objective of inducing firms to make investments that will help achieve regulatory goals: Regulations of automotive fuel efficiency and emissions are two examples. We find rhat a tax on the activity causing the externality may be unable in induce the desired investment and that when a tax could induce the investment it may be time inconsistent.

Keywords: ENTREPRISES; POLLUTION; REGULATION (search for similar items in EconPapers)
JEL-codes: D21 L29 L51 Q28 (search for similar items in EconPapers)
Pages: 9 pages
Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:fth:calirv:95-96-5

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