Prices, Politics and Persuasion: The Case of Pollution Control and Clean Technology Adoption

摘要: This paper presents three simple models to study how prices, politics and persuasion may each play a role in environmental policymaking. Our conclusions are twofold. First, the absence of increasing returns, requiring polluting industry purchase pollution permits can internalize negative externality pollution, optimal price should increase with disutility pollution. Second, returns using clean technologies, it is welfare enhancing complement policy tax-funded subsidy industry, or public campaign persuade consumers move away from generating goods.