Tag Archives: emissions tax

Some Carbon Tax Scenarios

How does a competitive industry respond to an emissions tax in the short run and the long run?  What if the industry is a monopoly? In this post I bring together two standard pieces of microeconomic analysis: the effect of … Continue reading

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Pollution Control and Output

Discussions of pollution control often focus on abatement technologies. But that’s only half the picture. Suppose a profit-maximising firm is producing and selling a good, but the production process emits a pollutant. In the absence of policy intervention, it will … Continue reading

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