Template-Type: ReDIF-Paper 1.0

Author-Name: Clemens Heuson
Author-X-Name-First: Clemens
Author-X-Name-Last: Heuson

Title: 	Emission standards vs. taxes: The case of asymmetric Cournot duopoly and uncertain control costs
	
Abstract: It is well known that uncertainty concerning firms’ costs as well as market
power of the latter have to be taken into account in order to design and choose environmental
policy instruments in an optimal way. As a matter of fact, in the most actual
regulation settings the policy maker has to face both of these complications simultaneously.
However, hitherto environmental economic theory has restricted itself to either of
them when submitting conventional policy instruments to a comparative analysis. The
article at hand accounts for closing this gap by investigating the welfare effects of
emission standards and taxes against the background of uncertain emission control
costs and a polluting asymmetric Cournot duopoly.
Length:  27 pages
Creation-Date:  2008-03
File-URL: http://www.bgpe.de/texte/DP/045_heuson.pdf
File-Format: Application/pdf
File-Function: First version, 2008
Number: 045
Classification-JEL: D62, D89, L13, Q58
Keywords: Asymmetric Cournot duopoly, external diseconomies of pollution, cost uncertainty, emission standard, emission tax
Handle: RePEc:bav:wpaper:045_heuson