Article ID Journal Published Year Pages File Type
5059773 Economics Letters 2013 4 Pages PDF
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
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