Discussion Papers no. 214

Non-verifiable emissions, voluntary agreements, and emission taxes

This paper demonstrates that voluntary agreements between a regulator and an industry can be Pareto superior to environmental taxes. Further, such agreements may differ from direct regulation in a non-trivial way. The first-best optimum may be included in the set of possible agreements, even if it is not attainable using tax instruments. There is no uncertainty or asymmetric information in the model. However, it is assumed that some emissions are observable, but not verifiable. This may be interpreted as a situation where precise formal specification of the pollutant is infeasible.

Om publikasjonen

Tittel

Non-verifiable emissions, voluntary agreements, and emission taxes

Ansvarlig

Karine Nyborg

Serie og -nummer

Discussion Papers no. 214

Utgiver

Statistics Norway, Research Department

Emne

Discussion Papers

Antall sider

18

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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