Dietz, Jürgen (contributor); Michaelis, Peter (contributor) - 2004 - [Elektronische Ressource]
*
s
*
s
'
2
s
>−=
ε∂
∂
.
12
Under taxation the profit function is given by . Again
using the envelope … case of taxation:
(9) 0y]v[c
*
t
*
t
'
2
t
>−=
ε∂
Π∂
Comparing (7) and (9) in view of > and > as derived in Section 3 … always exceed profits under
taxation if both instruments lead to the same emission level e
n
. As a consequence, for the …