This paper examines to what extent incomplete compliance of environmental regulation mitigates the distortions caused by pre-existing labour taxes. We study the relative cost efficiency of three market-based instruments: emission taxes, tradable permits and output taxes. In a first-best setting...

We investigate the influence of a judge’s objective function on the type of sanctions used for enforcing environmental standards. We focus on the difference between monetary and non-monetary penalties. Therefore, we examine the extent to which judges take social costs of sanctions into account...

The European Commission’s proposal for a Carbon Border Adjustment Mechanism (CBAM) to strengthen the existing Emissions Trading System (ETS) is a policy initiative that has the potential to impact carbon emissions outside of the EU. The question is whether CBAM does indeed provide an incentive...