Enforcement Costs Shape Optimal Pollution Pricing for Full Compliance
The article discusses how to set the right prices for pollution when enforcing rules is expensive. The researchers suggest that to make sure companies follow the rules, regulators need to set taxes that make it worth it for everyone to comply. This means different companies might have to pay different amounts. In most cases, it's better for regulators to know about each company's costs and behaviors. If they do, using a uniform pollution price won't work as well as setting individual taxes.