Taxes and Quotas for a Stock Pollutant with Multiplicative Uncertainty

Abstract

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Policy options in addressing livestock’s contribution to climate change

“…In contrast, a tax provides a constant incentive for producers to reduce emissions, so they reduce emissions more when the abatement costs are low, and reduce them less when they are high. Because of this flexibility, studies have estimated that a tax could result in substantially greater net benefits than a cap and trade system (Hoel and Karp, 2001;Newell and Pizer, 2002;Pizer, 2002). The relative disadvantage of a cap-andtrade scheme can be reduced by setting a maximum (or minimum) permit price, which would be maintained by the government selling or purhasing permits as required.…”

Bayesian Learning and Regulation of Greenhouse Gas Emissions

“…(1) and (8). In each period, the realization of damages depends on the true value of g. Stocks and beliefs evolve as we described above.…”

“…In cases where there is a large welfare difference under the two policies, the model does not satisfy the Principle of Certainty Equivalence (Hoel and Karp [8] and Pizer [33]). Thus, a large difference in welfare under the two policies seems to require that the endogenous targets also be different under the two policies.…”

“…Several papers ( [7], [8], [13], and [26]) compare taxes and quotas for the control of stock externalities when firms and the regulator have asymmetric information about abatement costs.…”

Multiple instruments to change energy behaviour: The emperor’s new clothes?

“…A range of additional instruments are also introduced. These include renewable share requirements in energy productionso-called green certificates (Amundsen and Mortensen 2001, Bye 2003, Menanteau et al 2003, requirements for demand side energy saving-referred to as white certificates (Bertoldi et al 2006, Quiron 2006, cap-and-trade for greenhouse gas emissions-known as brown certificates (Hoel 1998, Hoel andKarp 2001) 4 , and subsidies for renewable energy.…”