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FEEM Working Papers, Fondazione Eni Enrico Mattei >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/43441
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| Title: | | Second best environmental policies under uncertainty  |
| Authors: | | Antoniou, Fabio Hatzipanayotou, Panos Koundouri, Phoebe |
| Issue Date: | | 2010 |
| Series/Report no.: | | Nota di lavoro // Fondazione Eni Enrico Mattei: Sustainable Development 2010,3 |
| Abstract: | | We construct a strategic trade model of an international duopoly, whereby production by exporting firms generates a local pollutant. Governments use environmental policies, i.e., an emissions standard or a tax, to control pollution and for rent shifting purposes. Contrary to their firm, however, governments are unable to perfectly foresee the actual level of demand, the cost of abatement and the damage caused from pollution. Under these modes of uncertainty we derive sufficient conditions under which the governments optimally choose an emissions tax over an emissions standard. |
| Subjects: | | Strategic Environmental Policy Pollution Choice of Policy Instrument Uncertainty |
| JEL: | | F12 F18 Q58 |
| Document Type: | | Working Paper |
| Appears in Collections: | | FEEM Working Papers, Fondazione Eni Enrico Mattei
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