Regulation via the Polluter-Pays Principle

S. Ambec and L. Ehlers. Regulation via the Polluter-Pays Principle. LERNA Working Paper No. 10.18.324, Dec 2010, 31 p.
http://www2.toulouse.inra.fr/lerna/travaux/cahiers2010/10.18.324.pdf

We consider the problem of regulating an economy with environmental pollution. We examine the distributional impact of the polluter-pays principle which requires that any agent compensates all other agents for the damages caused by his or her (pollution) emissions. With constant marginal damages we show that regulation via the polluter-pays principle leads to the unique welfare distribution that assigns non-negative individual welfare and renders each agent responsible for his or her pollution impact. We extend both the polluter-pays principle and this result to increasing marginal damages due to pollution. We also discuss the acceptability of the polluter-pays principle and compare it with the Vickrey-Clark-Groves mechanism. (© authors)


Vous aimerez aussi...

Laisser un commentaire

Votre adresse e-mail ne sera pas publiée.

Ce site utilise Akismet pour réduire les indésirables. En savoir plus sur comment les données de vos commentaires sont utilisées.

Rechercher dans OpenEdition Search

Vous allez être redirigé vers OpenEdition Search