Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5059773 | Economics Letters | 2013 | 4 Pages |
Abstract
We construct a dynamic general equilibrium model of pollution and study in a holistic way the environmental policies, whereby government sets up emission caps and sells emission permits at a competitive price which can be viewed as an emission tax. Then, it uses the collected tax revenues to finance public abatement activities. We characterize a steady-state equilibrium and show how it changes with the size of the economy and with a change in natural pollution absorption rate.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Hamid Beladi, Lu Liu, Reza Oladi,