Ambient-based tax-subsidy schemes have drawn considerable interest in nonpoint pollution literature as alternatives to emissions-based instruments. Expanding especially on Segerson's [J. Environ. Econom. Management 15, 88-98 (1988)] seminal article, this article examines the optimal design and budget-balancing properties of ambient tax-subsidy schemes under more realistic assumptions about the dimensions of firms' choice sets than prior research.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
- Management, Monitoring, Policy and Law