This article analyzes regulator and polluting firm behavior in an emission tax system with imperfect monitoring, and contrasts the associated results with those under perfect monitoring. It is found that the firm’s optimal emissions may depend on either monitoring probability or emission tax...

Economic analysis has much to contribute to understanding and analyzing the conservation of biological diversity and the provision of ecosystem services. These issues are vitally important and relatively understudied by economists to date. Application of economic tools is needed to understand...

Many economists propose the superiority of market-based instruments, and an increasing use of such measures in OECD countries has taken place. However, there has been (and still is) some reluctance by policymakers to use market-based instruments in climate policy. This article provides a...

This article explores the issue of nonpoint pollution credit production in the context of water quality in rivers and streams. Such trading depends on emission reduction cost differential between point source polluters, such as publicly owned treatment plants and industrial sources, and nonpoint...