All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

Kathy Paulson-Gjerde and Peter Z Grossman
''Implications of nonlinearity in environmental instrument choice''
( 2015, Vol. 35 No.4 )
The classic paper by Weitzman (1974) on environmental instrument choice showed that relative efficiency of a price or quantity instrument depended on the elasticities of the marginal cost and benefit functions. Linear models with additive or multiplicative errors lent support for many of Weitzman's results. This paper investigates nonlinear functions and again shows Weitzman largely correct. Moreover it supports a conjecture he made about the relative efficacy of price versus quantity instruments.
Keywords: Environmental Instrument choice, nonlinearity
JEL: Q5 - Environmental Economics: General
Manuscript Received : Mar 20 2015 Manuscript Accepted : Oct 16 2015

  This abstract has been downloaded 1322 times                The Full PDF of this paper has been downloaded 150351 times