This paper examines the impact of an emissions trading scheme (ETS) on industry output, price, costs, emissions, market shares, and pro…ts. We develop formulae for the number of emissions permits that have to be freely allocated to …rms in order to neutralize any adverse impact the ETS may have on pro…ts. Under quite general conditions, industry pro…ts are preserved so long as …rms are freely a...

Optimal Redistributive Taxation with Both Extensive and Intensive Responses This paper characterizes optimal income taxation when individuals respond along both the intensive and extensive margins. Individuals are heterogeneous across two dimensions: specifically, their skill and disutility of participation. Preferences over consumption and work effort can differ with respect to the level of sk...

This paper sets up a two-sector, two-period trade model of a developing country which is abundant in a non-renewable natural resource but scarce in industrial goods. It shows that lower future travel costs, rising demand for tourism and higher preferences for the environment slow down today’s optimal depletion of the natural resource that can be used for consumption or for exporting tourism ser...

We consider redistributional taxation between people with and without human capital if education is endogenous and if individuals differ in their perceptions about own ability. Those who see their ability as low like redistributive taxation because of the transfers it generates. Those who see their ability as high may also like redistributive taxation because it stops other people receiving edu...

The paper develops a political economy model to assess the interplay between party formation and an environmental policy dimension viewed as secondary to the redistributive dimension. We de…ne being a secondary issue in terms of the intensity of preferences over this issue rather than in terms of the proportion of voters who care for the environment. Equilibrium policies are the outcome of an e...

We analyze amodel in which firms are able to acquire information about product risks and may or may not be required to disclose this information. We initially study the effect of disclosure rules assuming that firms are not liable for the harm caused by their products. Mandatory disclosure is obviously superior to voluntary disclosure given the information about product risks that firms possess...

The cytotoxic structure-activity relationships among a series of xanthone derivatives from Mesua beccariana, Mesua ferrea and Mesua congestiflora were studied. Eleven xanthone derivatives identified as mesuarianone (1), mesuasinone (2), mesuaferrin A (3), mesuaferrin B (4), mesuaferrin C (5), 6-deoxyjacareubin (6), caloxanthone C (7), macluraxanthone (8), 1,5-dihydroxyxanthone (9), tovopyrifoli...

For a durable consumption good which turns into waste after consumption, the socially optimal durability increases with an increase in the marginal environmental damage. In a laissez-faire equilibrium under perfect competition, producers fail to provide an efficient product design, i.e. durability is inefficiently small, whereas the amount of solid waste is inefficiently large. The market failu...

This article studies the optimal use of fines and imprisonment when an offender’s level of wealth cannot be observed by the enforcement authority. I employ a model in which there are two types of offenders — a low-wealth type and a high-wealth type. The consequence of the unobservability of wealth depends on whether the enforcement authority would employ fines alone, or would also impose impris...

Intergenerational Earnings Mobility and Preferences for Redistribution This paper analyzes the extent to which intergenerational upward and downward mobility in earnings are related to individuals’ preferences for redistribution. A novel survey question from the German Socio-Economic Panel Study – whether the taxes paid by unskilled workers are too high, adequate or too low – are used to elicit...