The author characterizes the Markov perfect tax that induces a common property oligopoly to extract efficiently a nonrenewable resource. For linear and isoelastic demand, he provides closed-form expressions of the unique (specific) tax. Industry profits may be higher or lower in the oligopoly...

For many environmental problems regulators are uncertain about both the costs of abatement and the stock-related damages. For example, governments have imperfect information about damages caused by greenhouse gas stocks, and also about the costs of abating greenhouse gas emissions. They acquire...

We compare the short-run and long-run effects of environmental reform and harmonization under autarky and free trade. When trade is driven by environmental distortions rather than real relative advantages, harmonization of environmental policies, even if achieved by lowering standards in one...