Paying for Pollution? How General Equilibrium Effects Undermine the “Spare the Air” Program

@article{Sexton2012PayingFP,
  title={Paying for Pollution? How General Equilibrium Effects Undermine the “Spare the Air” Program},
  author={Steven E. Sexton},
  journal={Environmental and Resource Economics},
  year={2012},
  volume={53},
  pages={553-575}
}
  • Steven E. Sexton
  • Published 14 August 2012
  • Economics
  • Environmental and Resource Economics
Policy-makers have relied on non-coercive mechanisms to achieve socially preferred outcomes in a variety of contexts when prices fail to ration scarce resources. Amid heightened concern about environmental damage and climate change, public appeals for cooperation and pecuniary incentives are frequently used to achieve resource conservation and other prosocial behavior. Yet the relative effectiveness of these two instruments is poorly understood when pecuniary incentives are small. This paper… 
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