Show that an emission tax and an absolute emission standard are equivalent instruments to regulate a polluting

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Show that an emission tax and an absolute emission standard are equivalent instruments to regulate a polluting monopolist if and only if the standard is binding.

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A Course In Environmental Economics

ISBN: 9781316866818

1st Edition

Authors: Daniel J Phaneuf, Till Requate

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Question Posted: Feb 11, 2024 07:03 AM

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Show that an emission tax and an absolute emission standard are equivalent instruments to regulate a polluting

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To establish that an emission tax known as a Pigouvian tax and an absolute standard or cap on pollution are equivalent instruments for regulating a po...View the full answer

A Course In Environmental Economics

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