EMISSION TAXES VS FINANCIAL SUBSIDIES IN POLLUTION-CONTROL

Authors
UIMONEN S
Citation
S. Uimonen, EMISSION TAXES VS FINANCIAL SUBSIDIES IN POLLUTION-CONTROL, Journal of economics, 60(3), 1994, pp. 281-297
Citations number
15
Categorie Soggetti
Economics
Journal title
Journal of economics → ACNP
ISSN journal
09318658
Volume
60
Issue
3
Year of publication
1994
Pages
281 - 297
Database
ISI
SICI code
0931-8658(1994)60:3<281:ETVFSI>2.0.ZU;2-U
Abstract
The polluting firm is modelled as a multi-product firm where one proce ss produces the product and the residual as a by-product. A second pro cess neutralizes a part of the residual harmless to the environment. W e show that the subsidies to a residual abating input do not necessari ly lead to a reduction in the emission into the environment, whereas t he emission taxes do.