Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community for help and clear up your study doubts
Discover the best universities in your country according to Docsity users
Free resources
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
This lecture is from Environmental and Resource Economics. Key important points are: Clean Air Act Amendments, Impact of Uncertainties, Uncertainty About The Caaa, Three Period Time Horizon, Decision Making, Level of Production, Pollution Abatement Capital, Probability of Enactment, Beginning of Period, Observing Regulation
Typology: Slides
1 / 9
This page cannot be seen from the preview
Don't miss anything!
Paper examines impact of uncertainties surrounding theenactment and enforcement of the Clean Air ActsAmendments of 1990 on firm investments in pollutionabatement equipment.
-^
Findings:-Likelihood of CAAA passage affects firm investment inpollution abatement equipment-Enforcement actions significantly affect firm investmentpollution abatement equipment only after enactment.
-^
-^
-^
th
-^
Period 3:- Firm simply chooses amount of output to produce.The firm is only found to be compliant if audited.Monitoring is however imperfect.
-^
The firm’s optimization generates the result that the firminvests in period 1 such that marginal cost of investmentequals expected discounted fine forgone in periods 2 and 3
-^
Environmental preferences of sub-committee on health andenvironment members positively and significantly affect average firminvestments in pollution abatement capital.
-^
Subcommittee activities has the expected negative impact on averagefirm investments in pollution abatement capital.
-^
Inspections has a positive effect on average firm investments inpollution abatement capital (both before and after enactment butstatistically significant only after enactment)
-^
Fines has a positive effect on investment but is significant only afterenactment.
-^
Other variables generally have expected effects on investment but notalways significant.
