In contrast with what we perceive is the conventional wisdom about setting emissions taxes under uncertainty, we demonstrate that setting a uniform tax equal to expected marginal damage is not generally efficient under incomplete information about firms' abatement costs and damages from...

We model a Cournot duopoly market in which a CSR firm interacts with a profit maximizing firm and where the market is regulated with Pigouvian taxation. We consider three different kinds of CSR firm behaviors: (i) consumer-friendly; (ii) environmentally-friendly; and (iii) consumer-environment...