Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/39999 
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dc.contributor.authorRohling, Moritzen
dc.date.accessioned2010-09-13T15:07:54Z-
dc.date.available2010-09-13T15:07:54Z-
dc.date.issued2010-
dc.identifier.urihttp://hdl.handle.net/10419/39999-
dc.description.abstractRegulating inter-country externalities, like climate change, raises various enforcement problems. It is often argued that international pricebased regulations (e.g. emission taxes) are more difficult to enforce than quantity-based regulations (e.g. tradable pollution permits). In this paper, we analyze the relative performance of price-based and quantity-based instruments for cases where costs and benefits are uncertain and enforcement of quantity regimes is stricter than for price-based regimes. We show that under these conditions, instrument choice solely based on the relative slopes of the marginal costs can be inefficient. If enforcement probabilities differ, rational policy choice should also take into account the level of the marginal benefit curve, as well as institutional parameters. In contrast to earlier analyses on Prices vs. Quantities, we find that the difference in welfare for both policy instruments also depends on the variance of the marginal abatement costs. Furthermore, numerical simulations of our stylized model suggest that, for climate policies, quantity-regulations might well be preferable to price-based approaches after all.en
dc.language.isoengen
dc.publisher|aVerein für Socialpolitik, Ausschuss für Entwicklungsländer |cGöttingenen
dc.relation.ispartofseries|aProceedings of the German Development Economics Conference, Hannover 2010 |x24en
dc.subject.jelD8en
dc.subject.jelL51en
dc.subject.jelK42en
dc.subject.jelQ58en
dc.subject.ddc330en
dc.subject.keywordmarket-based instrumentsen
dc.subject.keywordincomplete enforcementen
dc.subject.keywordenvironmental regulationen
dc.subject.keyworduncertaintyen
dc.titlePrices vs. Quantities with incomplete enforcement and different enforcement probabilities-
dc.typeConference Paperen
dc.identifier.ppn654352534en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:gdec10:24en

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