Taxes, Permits, and the Diffusions of a New Technology

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EfD Authors:

The author looks at the effects of the choice between taxes and permits on the pattern of adoption of a new emissions abatement technology. The regulator determines the optimal ex-post amount of emissions before firms start to adopt the technology. Each firm decides when to adopt, considering benefits, costs, and advantage gained over their rivals, producing a sequence of adoption that is “diffused” into the industry over time.

Policy Design

The economics of plastic bag legislation in South Africa

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In May 2003 South Africa introduced legislation intended to decrease plastic bag litter. It combined standards and price-based economic tools in an attempt to reduce the public's demand for plastic bags. This paper analyses the short term effects of the legislation on bag demand.

Policy Design

Measuring Green Productivity Growth for China’s Manufacture Sectors

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Over the last two decades, China has sustained a rapid economic growth at about 8-10%, part of which is attributed to the positive total factor productivity (TFP) growth. However, this extraordinary economic performance has been accompanied by severe environmental pollution and associated health damage.

Policy Design