A complete implementation of the efficient allocation of pollution

Nava Kahana, Yosef Mealem, Shmuel Nitzan

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

This paper presents a simple twofold mechanism that attains a complete implementation of the efficient allocation of pollution. The first component is adopted from Duggan and Roberts [Duggan, J., Roberts, J., 2002. Implementing the efficient allocation of pollution. American Economic Review 92, 1070-1078.]. The second new component takes care of the moral hazard problem.

Original languageEnglish
Pages (from-to)142-144
Number of pages3
JournalEconomics Letters
Volume101
Issue number2
DOIs
StatePublished - Nov 2008

Keywords

  • Efficient pollution allocation
  • Implementation
  • Market for pollution rights
  • Moral hazard

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