Optimal monitoring to implement clean technologies when pollution is random


Autoria(s): Macho Stadler, Inés; Pérez Castrillo, David
Contribuinte(s)

Universitat Autònoma de Barcelona. Unitat de Fonaments de l'Anàlisi Econòmica

Institut d'Anàlisi Econòmica

Data(s)

15/01/2007

Resumo

We analyze a model where firms chose a production technology which, together with some random event, determines the final emission level. We consider the coexistence of two alternative technologies: a "clean" technology, and a "dirty" technology. The environmental regulation is based on taxes over reported emissions, and on penalties over unreported emissions. We show that the optimal inspection policy is a cut-off strategy, for several scenarios concerning the observability of the adoption of the clean technology and the cost of adopting it. We also show that the optimal inspection policy induces the firm to adopt the clean technology if the adoption cost is not too high, but the cost levels for which the firm adopts it depend on the scenario.

Formato

31

316810 bytes

application/pdf

Identificador

http://hdl.handle.net/2072/3646

Idioma(s)

eng

Relação

Working papers; 672.06

Direitos

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Palavras-Chave #Tecnologia -- Aspectes ambientals
Tipo

info:eu-repo/semantics/workingPaper