Jou, Jyh-Bang - In: Environmental & Resource Economics 20 (2001) 1, pp. 27-39
This article investigates theissue of optimal effluent fees in a frameworkwhere waste emissions are abated by investingin capital of which the pay-off is uncertainand the cost is fully sunk. The stock of wasteemissions harms an individual firm'sproduction, but the firm will underestimatethis...