We explore the design of self-financing tax-subsidy schemes to solve hold-up problems in environmental regulation. The announcement of the tax rate seems to be preferable to solve hold-up problems with respect to the investment in environmental R&D. In contrast, only the announcement of the...

This original book presents a new basis for environmental policymaking: environmental networks. This framework graphically simplifies the analysis of environmental problems and emphasizes the spatial nature of economic activity and pollution dispersion. The book first discusses the foundations...