Lumped element models, also known as, mass-spring-damper models, are widely used to simulate deformable objects because of their simplicity and computational efficiency. However, the parameters of lumped element models are typically determined in an ad hoc fashion through trial-and-error, as these models are not directly based on continuum mechanics of deformable objects. In this paper, an alte...

If the measurement of production in a commons is accurate and precise, it is possible to design a tradable permit program such that, under a fairly general set of conditions, the market equilibrium is efficient for the given aggregate permit level and everyone is better off after the permit program than before. Often, however, implementation of a tradable permit system is postponed or never und...

A waste-to-energy firm that recycles organic waste with energy recovery performs two environmentally beneficial functions: it diverts waste from landfill, and it produces renewable energy. At the same time, the waste-to-energy firm serves and collects revenue from two types of customers: waste generators who pay for waste disposal service, and electricity consumers who buy energy. Given the pro...

Existing approaches to modeling mismatch effects in matching-critical circuits are based upon models derived under the widely accepted premise that distributed parameter devices can be modeled with lumped parameter models. It is shown in this paper that the lumped parameter models do not consistently reflect device performance and introduce substantial errors in matching-critical circuits if ei...

This paper deals with second-best pollution taxation by investigating allocations instead of the corresponding tax rates. Assuming certain restrictions on utility and that the marginal revenue from environmental taxation is positive, it is shown that environmental quality is higher in second best where only distortionary taxes are used to finance public expenditures than in the first-best optim...

Let {(Xi; Yi): i= : : : ;−1; 0; 1; : : :} be a doubly in nite renewal-reward process, where {Xi: i= : : :− 1; 0; 1; : : :} is an i.i.d. sequence of renewal cycle lengths and Yi= g(Xi−q; Xi−q+1; : : : ; Xi) is the lump reward earned at the end of the ith renewal cycle, with some function g :R q+1 → R . Starting with the rst renewal cycle (of duration X1) at the time origin, let C(t) denote the e...

We thank Jim Brander, Al Dexter and Alan Kraus for helpful comments. We are also indebted to the Departmental Editor, an Associate Editor, and two referees for their detailed and insightful suggestions. There are many situations where policy-makers would like to induce firms to make a major discrete conversion in production technology to help the environment. This paper examines how heterogenei...

In this paper, we study a firm’s optimal lobbying behavior and its effect on investment in pollution abatement capital. We develop a dynamic framework where a representative firm can invest in both abatement and lobby capital in response to a possible future increase in pollution tax. We show that when the firm lobbys against the scale of the tax increase at a determined date, it should act lik...