Non-strategic firms with rational expectations make investment and emissions decisions. The investment rule depends on firms’ beliefs about future emissions policies. We compare emissions taxes and quotas when the (strategic) regulator and (nonstrategic) firms have asymmetric information about abatement costs, and all agents use Markov Perfect decision rules. Emissions taxes create a secondary ...

Current debates on mitigation emphasize the role of the inertia of the economic system. Our aim in this paper is to study in more depth how sectorally dif ferentiated inertia impacts on optimal CO2-emission abatement policies. Using the STARTS model, we show that optimal abatement levels and costs differ sensibly among sectors. Differential inertia is the critical determinant of this trade-off,...

Production activities exert a negative impact on the environment through emissions of pollutants. Environmental policies aim at the implementation of abatement technologies to reduce these emissions. Cost-effectiveness analysis is often applied as a tool to find abatement strategies that yield a certain emission reduction at minimum direct abatement cost to the producer concerned. The strength ...

Following the UN Framework Convention on Climate Change [1], countries will negotiate in Kyoto this December an agreement to mitigate greenhouse gas emissions. Here we examine optimal CO2 policies, given long-term constraints on atmospheric concentrations. Our analysis highlights the interplay of uncertainty and socioeconomic inertia. We find that the ‘integrated assessment’ models so far appli...

Current policies in the road transport sector fail to deliver consistent and efficient incentives for greenhouse gas abatement (see companion article by Creutzig et al., in press). Market-based instruments such as cap-and-trade systems close this policy gap and complement traditional policies that are required where specific market failures arise. Even in presence of strong existing non-market ...

PREFACE The U. S. Environmental Protection Agency (EPA) initiated preparation of this Protocol as part of its commitment to assist the PFC Emissions Reduction/Climate Partnership for the Semiconductor Industry (the Partnership) to achieve its voluntary fluorinated greenhouse gas (F-GHG) emission reduction and reporting goals. F-GHGs include the most powerful and often persistent greenhouse gase...

Introduction Airborne asbestos-fiber is an important healthhazard. Asbestos abatement is a significant component of the overall cleanup costs associated with building demolition and renovation. For example, asbestos abatement efforts associated with the DoE’s national weapons’ complex clean-up efforts may amount to $300 million. Abatement costs are primarily driven by the issues related to envi...

Within the framework of a dynamic Computable General Equilibrium model this paper analyses the impact of trade restrictions on regional rates of return on capital, marginal costs of abatement and optimal climate policy. It will be shown that regional differences both in marginal costs of abatement and in the marginal productivity of capital are driven by market imperfection. With restrictions o...

Scholars often assert that intra-state competition increases the ability of firms to extract tax abatements by playing local governments off of one another. We test this proposition using data on the more than 5,000 tax abatement agreements signed in Ohio between 1983 and 2004 under its enterprise zone program. We articulate a political economic model of tax abatement generosity that models the...