Michael Hazilla and Raymond J. Kopp (1990), ‘Social Cost of Environmental Quality Regulations: A General Equilibrium Analysis’, Journal o f Political Economy, 98, pp. 853-73

2018 ◽  
pp. 283-304
Keyword(s):  
Political Economy ◽  
General Equilibrium ◽  
Environmental Quality ◽  
Social Cost ◽  
Equilibrium Analysis ◽  
General Equilibrium Analysis

scholarly journals Is Pollution a Giffen Good? General-Equilibrium Analysis and Some Policy Implications

2019 ◽  
Vol 10 (3) ◽  
pp. 488
Author(s):  
Aleksandar VASILEV
Keyword(s):  
Simple Model ◽  
General Equilibrium ◽  
Environmental Quality ◽  
Policy Implications ◽  
Equilibrium Analysis ◽  
Carbon Taxes ◽  
Pollution Permits ◽  
General Equilibrium Analysis ◽  
Giffen Good ◽  
Emission Caps

This paper takes a simple model with pollution and environmental quality and derives some novel results. In particular, pollution is shown to be a Giffen good. This is a very important finding with clear policy implications, namely that carbon taxes (and pollution permits) are counter-productive, as they lead to increase in pollution, and instead governments should administratively set emission caps.

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