This paper shows that when a very dirty technology is associated with positive production of a good in an economy then marginal reductions in dirtiness of the technology might lead to an increase in pollution if its consumers are environmentally very aware and a decrease in pollution if...

The literature on the Environmental Kuznets Curve (EKC) is incomplete in the sense that much of the theoretical and empirical literature are not properly linked. While the theoretical literature deals with the relationship between per capita income and net emissions much of the empirical...

This paper investigates the performance of liability rules in two-party stochastic externality problems where negotiations are feasible and side payments are based on the realized level of externalities. Results show that an increase in polluter liability does not necessarily increase safety or...