Environmental regulation of technically inefficient firms |
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| Authors: | Bruno Wichmann |
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| Institution: | Department of Resource Economics and Environmental Sociology, University of Alberta, 503 General Services Building, Edmonton, AB, Canada, T6G 2H1 |
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| Abstract: | This paper presents a model in which a technically inefficient firm is responsible for the emissions of pollutants. We derive second-best regulatory schemes (tax and quota) assuming that the firm’s technical efficiency is unknown to the regulator. |
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| Keywords: | D62 D82 L51 H23 |
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