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Investment subsidies and time-consistent environmental policy

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Abrego, Lisandro and Perroni, Carlo (1999) Investment subsidies and time-consistent environmental policy. Working Paper. Coventry: University of Warwick, Department of Economics. Warwick economic research papers (No.533).

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Abstract

We describe a model of dynamic poluution abatement choices with heterogeneous agents, where, due to the presence of a distributional objective and to the absence of incentive-compatible compensation mechanisms, the choice of a second-best level of emission taxation is time-inconsistent. In this model, we investigate whether investment subsidies can act as a substitute for policy commitment.

Item Type: Working or Discussion Paper (Working Paper)
Subjects: H Social Sciences > HJ Public Finance
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Pollution -- Taxation, Environmental impact charges, Pollution prevention, Investments
Series Name: Warwick economic research papers
Publisher: University of Warwick, Department of Economics
Place of Publication: Coventry
Official Date: June 1999
Dates:
DateEvent
June 1999Published
Number: No.533
Number of Pages: 22
Institution: University of Warwick
Status: Not Peer Reviewed
Access rights to Published version: Open Access (Creative Commons)
Description:

First draft, December 1997; this version, June 1999

Funder: Economic and Social Research Council (Great Britain) (ESRC)

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