Time inconsistent environmental policy and optimal delegation
Time consistency problems can arise when environmental taxes are employed to encourage firms to take irreversible abatement decisions. Setting a high carbon tax, for instance, would induce firms to invest in low-carbon technology, yet once investment has occurred the government can then reduce the c...
Main Authors: | , , |
---|---|
Format: | Working paper |
Published: |
University of Oxford
2003
|
Search Result 1