Efficient Pollution Regulation: Getting the Prices Right: Reply
Nicholas Z. Muller, Robert Mendelsohn
American Economic Review · 2012 · Volume 102 · Issue 1
Abstract
Fraas and Lutter raise two important points in their comment on Muller and Mendelsohn (2009): How to design policies for sources that yield negative marginal damages? How does statistical uncertainty in the marginal damages affect the trading ratios across emitters? We address both issues in this response. (JEL H53, Q53, Q58)
Keywords
National Government Expenditures and Welfare Programs, Air Pollution, Water Pollution, Noise, Hazardous Waste, Solid Waste, Recycling, Environmental Economics: Government Policy
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