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American Economic Review: Vol. 102 No. 1 (February 2012)

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Efficient Pollution Regulation: Getting the Prices Right: Reply

Article Citation

Muller, Nicholas Z., and Robert Mendelsohn. 2012. "Efficient Pollution Regulation: Getting the Prices Right: Reply." American Economic Review, 102(1): 608-12.

DOI: 10.1257/aer.102.1.608

Abstract

Fraas and Lutter raise two important points in their comment on Muller and Mendelsohn (2009): How to design policies for sources that yield negative marginal damages? How does statistical uncertainty in the marginal damages affect the trading ratios across emitters? We address both issues in this response. (JEL H53, Q53, Q58)

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Authors

Muller, Nicholas Z. (Middlebury College)
Mendelsohn, Robert (Yale U)

JEL Classifications

H53: National Government Expenditures and Welfare Programs
Q53: Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
Q58: Environmental Economics: Government Policy


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