全球智库信息集成服务系统(G2TT): Pollution Abatement Investment when Environmental Regulation is Uncertain

G2TT

来源类型	FEEM working papers "Note di lavoro" series
规范类型	论文
	Pollution Abatement Investment when Environmental Regulation is Uncertain
	Y.H. Farzin; P.M. Kort
发表日期	1998
出处	Climate Change and Sustainable Development
出版年	1998
语种	英语
摘要	In a dynamic model of a risk-neutral competitive firm which can lower its pollution emissions per unit of output by building up abatement capital stock, we examine the effect of a higher pollution tax rate on abatement investment both under full certainty and when the timing or the size of the tax increase is uncertain. We show that a higher pollution tax encourages abatement investment if it does not exceed a certain threshold rate - a "Laffer-curve" phenomenon. When the size of the tax increase is uncertain, at the time of the tax increase the abatement investment path may shift upward or downward depending on whether the actual tax rate is higher or lower than the firm's expected rate. But, when the time of the tax increase is uncertain, the abatement investment path always jumps upward. Further, the ad hoc practice of raising the discount rate to account for the uncertainty leads to underinvestment in abatement capital. We show how the size of this underinvestment bias varies with the future tax increase. Finally, we show that a credible threat to accelerate the tax increase can induce the firm to undertake more abatement investment.
特色分类	H32;D81;Q28
关键词	Abatement investment,Pollution tax,Uncertainty
URL	https://www.feem.it/en/publications/feem-working-papers-note-di-lavoro-series/pollution-abatement-investment-when-environmental-regulation-is-uncertain/
来源智库	Fondazione Eni Enrico Mattei (Italy)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/116371
推荐引用方式 GB/T 7714	Y.H. Farzin,P.M. Kort. Pollution Abatement Investment when Environmental Regulation is Uncertain. 1998.

条目包含的文件
文件名称/大小	资源类型	版本类型	开放类型	使用许可
NDL1998-075.pdf（403KB）	智库出版物		限制开放	CC BY-NC-SA	浏览