Environmental taxation: The impact of carbon tax policy commitment on technology choice and social welfare

Simple item page
dc.contributor.authorRustico, Erica
dc.contributor.authorDimitrov, Stanko
dc.date.accessioned2022-01-18T19:52:02Z
dc.date.available2022-01-18T19:52:02Z
dc.date.issued2022-01
dc.descriptionThe final publication is available at Elsevier via http://dx.doi.org/10.1016/j.ijpe.2021.108328. © 2022. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/en
dc.description.abstractMotivated by multiple real-world settings, we determine a social welfare-maximizing regulator's tax policies that induce a profit-maximizing polluting firm to make green technology choices. Using a game-theoretic approach we compare the optimal tax and social welfare over two periods under two scenarios: (1) a regulator committing to a tax level for both periods at the beginning of the first period; (2) a regulator who sets the same tax at the beginning of each period without disclosing this information to the firm (i.e. the firm is not aware of the second period tax in the first period). We find that regulators can achieve a higher social welfare when two-period commitments are made. Moreover, the outcomes in the commitment policy are less sensitive to small deviations in the optimal tax level.en
dc.description.sponsorshipNatural Sciences and Engineering Research Council of Canada || University of Waterlooen
dc.identifier.urihttps://doi.org/10.1016/j.ijpe.2021.108328
dc.identifier.urihttp://hdl.handle.net/10012/17913
dc.language.isoenen
dc.publisherElsevieren
dc.relation.ispartofseriesInternational Journal of Production Economics;
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/*
dc.subjectenvironmental taxesen
dc.subjectsustainabilityen
dc.subjectpolicy commitmenten
dc.subjectgreen technologiesen
dc.subjectenvironmental policyen
dc.titleEnvironmental taxation: The impact of carbon tax policy commitment on technology choice and social welfareen
dc.typeArticleen
dcterms.bibliographicCitationRustico, E., & Dimitrov, S. (2022). Environmental taxation: The impact of carbon tax policy commitment on technology choice and social welfare. International Journal of Production Economics, 243, 108328. https://doi.org/10.1016/j.ijpe.2021.108328en
uws.contributor.affiliation1Faculty of Engineeringen
uws.contributor.affiliation2Management Sciencesen
uws.peerReviewStatusRevieweden
uws.scholarLevelFacultyen
uws.typeOfResourceTexten

Files

Original bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
Rustico-Dimitrov-IJPE-2021.pdf
Size:
817.32 KB
Format:
Adobe Portable Document Format
Description:
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
4.47 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

Waterloo Research
Management Science and Engineering