@techreport{Breitscheidel2005Self,
abstract = {We explore the design of self-financing tax/subsidy mechanisms to solve hold-up problems in
environmental regulation. Under Cournot competition, announcing the subsidy rate seems to
be preferable to announcing the tax rate. Moreover, for constant marginal damage the hold-up
problem can always be solved by setting subsidies. Under Bertrand competition, only
announcing the tax rate can induce at least one firm to invest. We suggest that feebate systems
in the automotive sector should be designed as self-financing tax/subsidy mechanisms.},
author = {J\"{o}rg Breitscheidel and Hans Gersbach},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D43; Q28; L50; D62; 330; hold-up problems; environmental regulation; taxes and subsidies; self-financing mechanisms; emission control; Umweltpolitik; Umweltabgabe; Subvention; Steueraufkommen; Wohlfahrtseffekt; Theorie; hold-up problems},
language = {eng},
number = {1528},
title = {Self-financing environmental mechanisms},
type = {CESifo working papers},
url = {http://hdl.handle.net/10419/18992},
year = {2005}
}
