Is emission intensity or output U-shaped in the strictness of environmental policy?
Dijkstra, B. R., & Gil-Moltó, M. J. (in press). Is emission intensity or output U-shaped in the strictness of environmental policy?. Journal of Public Economic Theory, doi:10.1111/jpet.12277. ISSN 1097-3923
We show that, in a range of market conditions, an ever stricter environmental policy does not always lead to ever cleaner production methods and ever lower production of polluting goods. We consider an integrated technology, where firms can reduce th... Read More