Abstract
Departing from a perfectly competitive economic environment where Pigovian pricing is the most efficient means of corrective action, government policy towards the control of pollution in oligopolistic industries may take many forms. However, formal environmental economic analysis of the scope for government action has tended to focus on a rather narrow range of policy tools, in particular a tax on emissions,1 marketable permit schemes and emission standards. Perhaps the most significant shortcoming of the approach is that it overlooked the role of technical change in affecting the choice of pollution control measures.
I would like to acknowledge the valuable comments from Elettra Agliardi, Paul Burrows, Gianni De Fraja, Marcello Messori.
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© 1999 International Economic Association
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Ferrante, F. (1999). Induced Technical Change, Scientific Advance and the Efficient Control of Pollution. In: Sertel, M.R. (eds) Contemporary Economic Issues. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-14540-9_6
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DOI: https://doi.org/10.1007/978-1-349-14540-9_6
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