Inducing technical change by standard oriented environmental policy : the role of information
In their seminal 1971-paper, W. J. Baumol and W. E. Oates analyzed effluent charges and "command and control" regarding their ability to attain a given standard of environmental quality at minimum cost. In the subsequent literature transferable discharge permits (TDPs) have been added to the portfolio of standard oriented environmental policy instruments. We put these instruments in a dynamic context. There, cost minimization is defined in an intertemporal setting allowing for induced technical change. It turns out that the relative performance of alternative policy instruments regarding their "dynamic cost-effectiveness" cruicially depends upon the information available to the involved agents. Under adverse informational conditions only a TDP-system with future markets is dynamically cost-effective.
Nutzung und Vervielfältigung:
Alle Rechte vorbehalten