About Polluting Eco-Industries: Optimal Provision of Abatement Goods and Pigouvian Fees

• Published in: IDEAS Working Paper Series from RePEc
• Main Authors: Sans, Damien, Schwartz, Sonia, Stahn, Hubert
• Format: Paper
• Language: English
• Published: St. Louis Federal Reserve Bank of St. Louis 01.01.2014

In this article we introduce a polluting eco-industry. Depending on the level of the damage, we find one of two optimal equilibria. If the damage is low, we generalize the usual results of the economic literature to the polluting eco-industry: the dirty firm partially abates their emissions, only ef...