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Author(s)

Daniel Spulber

The long-run efficiency properties of regulatory instruments are examined in a multiple-input framework. The effluent tax and tradeable permit are shown to be efficient with free entry and exit of small firms. The across-the-board effluent standard results in excessive entry and excessive industry pollution.
Date Published: 1985
Citations: Spulber, Daniel. 1985. Effluent Regulation and Long Run Optimality. Journal of Environmental Economics and Management. (2)103-116.