Do new health conditions support mortality-air pollution effects? [An article from: Journal of Environmental Economics and Management]
Do new health conditions support mortality-air pollution effects? [An article from: Journal of Environmental Economics and Management]

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This digital document is a journal article from Journal of Environmental Economics and Management, published by Elsevier in . The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.Description: We analyze a model of environmental regulation with learning about environmental damages and endogenous choice of emissions abatement technology by a polluting firm. We compare environmental policy under discretion, in which policy is updated upon learning new information, versus under rules, in which policy is not updated. When investment in abatement technology is made prior to the resolution of uncertainty, neither discretion nor rules with either taxes or standards achieve an efficient solution except in special cases. When there is little uncertainty, rules are superior to discretion because discretionary policy gives the firm an incentive to distort investment in order to influence future regulation. However, when uncertainty is large, discretion is superior to rules because it allows regulation to incorporate new information. Taxes are superior to standards under discretion regardless of the relative slopes of marginal costs and marginal damages for the case of quadratic abatement costs and damages.

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  • Released: November 16, 2020
  • Author: M.F. Evans,V.K. Smith
  • Rating: 4,9
  • Publisher: Ebook DIgital Agency
  • Total Page: 971 pages
  • File Size: 3670 KB
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