Enforcement costs and the incentive to evade controls on production |
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Authors: | RPeter Terrebonne |
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Institution: | Department of Economics, University of South Carolina, Aiken Campus, Aiken, South Carolina 29801, USA |
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Abstract: | Economists have long favored emission taxes as a method of controlling pollution. One reason for the widespread support of emission taxes has been the assumption that emission taxes would be easier to enforce than other policies. However, recent developments in the discussion of pollution control allow more specific comparisons of enforcement costs and yield the conclusion that there may exist at least one alternate regulatory scheme that would be easier to enforce than emission taxes. |
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