We study the problem of a regulator who must control the emissions of a given pollutant from a series of industries when the firms' abatement costs are unknown. We develop a mechanism in which the regulator asks firms to report their abatement costs and implements the most stringent emissions...

Theoretical exposition of the trade-environment linkage (in the form of Environment Kuznets Curve) has been extensive. While one set of studies show that with the increase in per capita income environmental degradation would decline, the other set of studies has shown that no such trend exists...

This chapter provides a review and assessment of the extensive literature on the political determination of environmental regulation. A promising theoretical literature has emerged relatively recently that provides models of the political interaction of government with various interest groups in...