Verifiable and non-verifiable anonymous mechanisms for regulating a polluting monopolist

Abstract: Optimal regulation of a polluting natural monopolist must correct for both external damages and market power to achieve a social optimum. Existing non-Bayesian regulatory methods require knowledge of the demand function, while Bayesian schemes require knowledge of the underlying cost distr...

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Publicado en:Journal of Environmental Economics & Management Vol. 64; no. 3; pp. 410 - 427
Autores principales: Prieger, James E., Sanders, Nicholas J.
Formato: Artículo
Publicado: Academic Press Inc. Nov2012
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Nov2012
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      pub: Academic Press Inc.
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        83576908
        10.1016/j.jeem.2012.05.006
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        atl: Verifiable and non-verifiable anonymous mechanisms for regulating a polluting monopolist
      aug:
        au:
          Prieger, James E.
          Sanders, Nicholas J.
        affil:
          School of Public Policy, Pepperdine University, 24255 Pacific Coast Highway, Malibu, CA 90263, United States
          Department of Economics, College of William and Mary, Morton Hall, Williamsburg, VA 23187-8795, United States
      su:
        Monopolistic competition
        Economic activity
        Externalities
        Economic demand
        Bayesian analysis
        Knowledge management
        Approximation theory
      sug:
        subj:
          Monopolistic competition
          Economic activity
          Externalities
          Economic demand
          Bayesian analysis
          Knowledge management
          Approximation theory
      keyword:
        Polluting monopolist
        Surplus subsidy schemes
        Verifiable regulatory mechanisms
        Polluting monopolist
        Surplus subsidy schemes
        Verifiable regulatory mechanisms
      ab: Abstract: Optimal regulation of a polluting natural monopolist must correct for both external damages and market power to achieve a social optimum. Existing non-Bayesian regulatory methods require knowledge of the demand function, while Bayesian schemes require knowledge of the underlying cost distribution. We introduce mechanisms adapted to use less information. Our Price-based Subsidy (PS) mechanisms give the firm a transfer that matches or approximates the incremental surplus generated each period. The regulator need not observe the abatement activity or know the demand, cost, or damage functions of the firm. All of the mechanisms induce the firm to price at marginal social cost, either immediately or asymptotically.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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