|
EconStor >
University of Oslo >
Department of Economics, University of Oslo >
Memorandum, Department of Economics, University of Oslo >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/63112
|
| | |
| Title: | | Prices vs quantities: The case of risk averse agents  |
| Authors: | | Baldursson, Fridrik M. Fehr, Nils-Henrik M. von der |
| Issue Date: | | 2002 |
| Series/Report no.: | | Memorandum, Department of Economics, University of Oslo 2002,01 |
| Abstract: | | We explore the efficacy of price and quantity controls as environmental policy instruments in a stochastic setting in which agents are risk averse. We demonstrate that the assumption of risk aversion may improve the performance of a tax relative to that of a system of tradable quotas, and that restricting quota trade may enhance efficiency even though risk aversion in itself limits volumes of trade. The government may be able to improve the performance of a tradable quota system by judicious choice of distribution and amount of initial quotas and by trading pro-actively in the quota market. |
| Subjects: | | regulation effluent taxes tradable quotas uncertainty risk aversion environmental management |
| JEL: | | D81 H23 L51 Q28 Q38 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Memorandum, Department of Economics, University of Oslo
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/63112
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|