Espínola-Arredondo, Ana; Muñoz-García, Félix - In: Journal of Environmental Economics and Management 65 (2013) 1, pp. 133-152
This paper evaluates the welfare benefits of introducing environmental regulation in a market that is subject to the threat of entry. We consider complete and incomplete information settings, where potential entrants use the regulator's tax policy and the incumbent's output decisions in order to...