Stocks & Shocks: A Clarification in the Debate Over Price vs. Quantity Controls for Greenhouse Gases

We construct two simple examples that help to clarify the role of a key assumption in the analysis of price or quantity controls of greenhouse gases in the presence of uncertain costs. Traditionally much has been made of the fact that greenhouse gases are a stock pollutant, and that therefore the...

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Bibliographic Details
Main Authors: Parsons, John E., Taschini, Luca
Format: Working Paper
Language:en_US
Published: MIT Center for Energy and Environmental Policy Research 2011
Online Access:http://hdl.handle.net/1721.1/66271