Corrective Taxes and Auctions of Rights in the Control of Externalities: A Reply
- 1 October 1981
- journal article
- research article
- Published by SAGE Publications in Public Finance Quarterly
- Vol. 9 (4) , 479-484
- https://doi.org/10.1177/109114218100900407
Abstract
Our original article noted that auctions of pollution rights could increase a tendency toward monopoly in the offending industry. Professor Oates has provided some insightful comments in arguing for auctions rather than Pigouvian taxes, but the validity of the argument in our original article is not affected. Oates's suggestions for pricing externalities in the real world are a welcome addition to the discussion, but there are some reasons to believe that his approach would not be optimal under all circumstances.Keywords
This publication has 1 reference indexed in Scilit:
- Corrective Taxes and Auctions of Rights in the Control of ExternalitiesPublic Finance Quarterly, 1980