haku: @indexterm ENVIRONMENTAL QUALITY / yhteensä: 99
viite: 10 / 99
| Tekijä: | Stranlund, J. K. Ben-Haim, Y. |
| Otsikko: | Price-based vs. quantity-based environmental regulation under Knightian uncertainty: An info-gap robust satisficing perspective |
| Lehti: | Journal of Environmental Management
2008 : MAY, VOL. 87:3, p. 443-449 |
| Asiasana: | environmental quality environmental protection information uncertainty prices quantity |
| Vapaa asiasana: | Emissions control Environmental regulation Info-gap Knightian uncertainty Robustness Satisficing |
| Kieli: | eng |
| Tiivistelmä: | In the article, they revisit the choice between price-based vs. quantity-based environmental regulation under Knightian uncertainty; Under these circumstances, the policy objective cannot be to maximize the expected net benefits of emissions control. Instead, they evaluate an emissions tax and an aggregate abatement standard in terms of maximizing the range of uncertainty under which the welfare loss from error in the estimates of the marginal benefits and costs of emissions control can be limited. It is found that the same criterion involving the relative slopes of the marginal benefit and cost functions determines whether price-based or quantity-based control is more robust to unstructured uncertainty. Hence, not only does the relative slopes criterion lead to the policy that maximizes the expected net benefits of control under structured uncertainty, it also leads to the policy that maximizes robustness to unstructured uncertainty. |
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