product introduction decisions in a duopoly abstract in this paper we model a dynamic environment with two firms that fight for share of industry sales and profit in a market with constant size they capture share by repeatedly introducing new products price changes from period to period reflecting each firm s learning we formulate the problem as a repeated game where each player s decision at each period is to introduce a new product we find that in general each firm s frequency of product introductions clockspeed in equilibrium decreases as its fixed product introduction cost increases further we find that a higher rate of manufacturing learning results in a higher clockspeed and in a higher market share and also results in significantly worse profits for the competitor the results underscore the importance of manufacturing expertise in a firm s ability to introduce new products

hitting the jackpot product proliferation by multiproduct firms under uncertainty this paper presents a model of product proliferation by multiproduct firms under uncertainty firms introduce new differentiated products because they want to hit as many jackpots as possible products with high profits and long lives there is uncertainty about the success of new products as the probability of hitting a jackpot increases product proliferation increases more products are introduced and expected in equilibrium the expected number of products in equilibrium is always less than at the optimum but in industries with multiple firms as the probability of hitting a jackpot increases rivalry intensifies and that gap shrinks

technological expectations and adoption of improved technology abstract attention is focused upon the adoption demand rather than the creation supply of new technology which improves from time to time based on the expected flow of technological progress over which the firm demander has no control it must decide either to adopt the current best available technology or to postpone adoption the distinguishing features of the model are that more than one technological innovation is anticipated and expectations about the likelihood of such innovations are revised as time passes since the last innovation our analysis shows that the firm will adopt the current best practice if its technological lag exceeds a certain threshold moreover as time passes without new technological advances it may become profitable to purchase a technology that has been available even though it was not profitable to do so in the past

distributing the green cards permanent residency and personal income taxes after the immigration reform and control act of 1986 abstract we explore how permanent residency affects personal income tax participation and net personal income tax payments using variation from the immigration reform and control act of 1986 irca which authorized the largest u s amnesty to date we exploit the timing and geographic unevenness of irca s legalization programs alongside newly digitized data on personal income taxes in california home to the majority of applicants green cards induced the previously unauthorized to file state income tax returns at rates comparable to other california residents while the new returns generated little additional revenue through the end of the 1990s they did raise the incomes of families with children through new claims of the federal earned income tax credit

gender differences in the labor market impact of irca s amnesty provisions how to address the current record high number of unauthorized workers within our borders has been a hotly debated topic although a number of studies have examined the effect of employer sanctions bansak and raphael 2001 deborah a cobb clark clinton r shields and b lindsey lowell 1995 and border enforcement pia orrenius and madeline zavodny 2003 only a handful have examined the impact of amnesty on newly legalized immigrants sherrie a kossoudji and deborah a cobb clark 2002 neeraj kaushal 2006 while amnesty is being considered a current solution to immigration concerns the impact of past amnesty programs on the labor market outcomes and economic well being of immigrants has not been documented widely and the analysis has been limited largely to men in this paper we examine whether amnesty a provision of the 1986 immigration reform and control act irca affected the labor market outcomes and wages of the legalized population the analysis is carried out by gender to address male and female differences in labor supply and earnings legalization was intended to bring undocumented workers out of the shadows which may have affected their well being by reducing workplace vulnerabilities increasing job mobility and improving working conditions sherrie a kossoudji and cobb clark 2002 using data from the legalized population survey lps and a comparison sample from the 1979 national longitudinal survey of youth nlys79 we develop a quasi experimental framework to assess the impact of irca s amnesty provisions on the legalized population gender differences in the labor market impact of irca s amnesty provisions

modeling multiattribute utility risk and belief dynamics for new consumer durable brand choice this paper proposes a brand choice model to aid in the prelaunch management of a new consumer durable entry in an existing category the model contributes to theory by integrating the critical phenomena of multiattribute preference risk and dynamics in an individual level expected utility framework the integration is based on established theoretical constructs in utility bayesian decision analysis and discrete choice theory measurement and estimation procedures are presented an application is described and the managerial relevance of this work as a planning and forecasting tool is examined

the effects of dacamentation the impact of deferred action for childhood arrivals on unauthorized immigrants abstract as the largest immigration policy in 25 years deferred action for childhood arrivals daca made deportation relief and work authorization available to 1 7 million unauthorized immigrants this paper looks at how daca affects daca eligible immigrants labor market outcomes i use a difference in differences design for unauthorized immigrants near the criteria cutoffs for daca eligibility i find daca increases the likelihood of working by increasing labor force participation and decreasing the unemployment rate for daca eligible immigrants i also find daca increases the income of unauthorized immigrants in the bottom of the income distribution i find little evidence that daca affects the likelihood of attending school using these estimates daca moved 50 000 to 75 000 unauthorized immigrants into employment if the effects of deferred action for parents of americans and lawful permanent residents dapa are similar to daca then dapa could potentially move over 250 000 unauthorized immigrants into employment

the demand for information and the diffusion of a new product abstract the paper examines the implications of the ability of a consumer to learn about the characteristics of a new product on the diffusion of the product over time the demand for information by the consumer is shown to generate a sigmoid diffusion curve for total sales of the product further it is shown that over time the elasticity of demand along the diffusion curve increases

uncertainty competition and the adoption of new technology faced with the decision of whether or not to adopt a new technology whose economic value cannot be gauged with certainty the manager of the firm may elect to decrease the uncertainty by sequentially gathering information at a unit cost of c 0 updating his prior beliefs in a bayesian manner uncertainty regarding the actions of a competitor however cannot be reduced our model allows a manager to account for potential competition either substitute or complementary by inclusion of strategic considerations modelled in a game theoretic setting we show that the firm s best response mapping satisfies a dynamic programming recursion even when the one period reward function is unbounded providing management with a familiar tool to solve its problem best response behavior is characterized by a monotone sequence of pairs of threshold numbers which give rise to a cone shaped continuation region the continuation region is shown to shift up down with increases in the expected level of substitute complementary competition making the firm less more likely to adopt the innovation finally the existence of a nash equilibrium in cone shaped strategies is established

strategic timing of adoption of new technologies under uncertainty abstract in this paper we introduce experience effects into a duopoly game of timing of adoption of new technologies which exhibit exogenous technological progress departing from the existing literature with this model we obtain continuous and downward sloping reaction functions we find that a higher level of uncertainty increases the extent of dispersion between the equilibrium timings of adoption furthermore we find that the equilibrium timings are even more dispersed when the leader takes the follower s reaction into account when firm roles are made endogenous we find that if there is an incentive to lead follow the equilibrium timings are more less dispersed finally we show that it is possible for collusive adoption to improve welfare

adoption and diffusion of an innovation of uncertain profitability the argument has frequently been made that the pattern of diffusion associated with most new innovations will typically have certain characteristics a diffusion curve for an innovation is usually defined as the proportion of its potential users who have already adopted as a function of time measured from the first adoption many empirical studies by both economists and other social scientists have shown that diffusion curves nearly always have two distinct characteristics i they are s shaped the proportion adopted is an increasing function of time which is initially convex but eventually becomes concave and ii they tend to be right hand skewed the inflection point occurs at a time corresponding to a proportion adopted which is less than one half so that the function is concave over the greatest amount of time in fact this skewing is occasionally severe enough to make the diffusion curve appear concave everywhere the focus of most empirical studies of innovation diffusion has centered on identification of either the major determinants of the speed of diffusion or the characteristics of firms which determine how long they delay adoption the seminal contributions are griliches 6 study of hybrid corn and mansfield s 121 study of 12 industrial innovations these studies and most of the similar ones following conclude that diffusion is faster for innovations with higher profitability and that large firms tend to be the earliest adopters some studies e g mansfield 121 herregat 71 have attempted to ascertain

the impact of temporary protected status on immigrants labor market outcomes the united states currently provides temporary protected status tps to more than 300 000 immigrants from selected countries tps is typically granted if dangerous conditions prevail in the home country due to armed conflict or a natural disaster individuals with tps cannot be deported and are allowed to stay and work in the united states temporarily despite the increased use of tps in recent years little is known about how tps affects labor market outcomes for beneficiaries most of whom are unauthorized prior to receiving tps this study examines how migrants from el salvador who are likely to have received tps fare in the labor market compared with other migrants the results suggest that tps eligibility leads to higher employment rates among women and higher earnings among men the results have implications for recent programs that allow some unauthorized immigrants to receive temporary permission to remain and work in the united states

feebates for dealing with trade offs on fertilizer subsidies a conceptual framework for environmental management abstract approximately half of today s annual worldwide crop yields can be attributed to the application of mineral fertilizers globally we rely and depend on additional yields as a cornerstone of present and future global food security in areas with very low nutrient loads subsidies for appropriate and responsible fertilizer use may help farmers to increase their yields and improve soil fertility in many countries of the world fertilizer subsidies are applied as direct payments however they have also become an environmental risk factor we deliberate in what way s maximizing the farmer s economic yield conflicts with maximizing societal interests we show mathematically that from the perspective of a single farmer under the assumption that crop yields increase monotonically with the application of fertilizers any fertilizer subsidy provides an economic incentive to increase the application of fertilizer independent of the amount that has already been applied we suggest feebate systems i e fee and rebate based mechanisms like penalty taxes and subsidies based on a specific reference point or borderline as an economic strategy for regulating both over and under fertilization this acknowledges the various roles that subsidies have played historically ranging from agricultural systems that have generally over fertilized such as urban agriculture in china vietnam or indonesia to countries where fertilizer subsidies are provided to compensate for significant land degradation in order to connect feebates to fertilization based on a sustainable reference or borderline we provide a conceptual multilevel environmental and sustainability assessment that is linked to conventional and market based economic means such as farm specific feebates or cap and trade

boom and bust patterns in the adoption of financial innovations we develop a dynamic model of the adoption of financial innovations each period firms decide whether or not to adopt an innovation of uncertain value and the profitability of each period s adoptions reveals information about the innovation s value we show that characteristics of financial innovation waves cited by critics as evidence of irrational excess are in fact consistent with fully rational behavior we also show that social welfare is enhanced when more firms adopt innovations of questionable value and that financial intermediaries base an incentive to encourage such adoption article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies

information and profitability estimates modelling the firm s decision to adopt a new technology this paper uses a response surface based on catastrophe theory to examine the interaction of information and profitability estimates on the firm s adoption of a new technology or innovation as such the paper builds on the conceptual ideas behind mccardle s 1985 work an illustrative example using simulated data is presented to indicate how one might operationalize the key constructs for the purpose of estimating the model

nash equilibrium search for the best alternative in a recent paper weitzman econometrica 47 1979 641 654 described a policy of optimal search for the best alternative the present paper is concerned with the development and characterization of a policy of nash equilibrium search for the best alternative specifically it is shown that under certain monotonicity assumptions and under the assumption that firms have incomplete information regarding the results of rivals search behavior a nash equilibrium search policy exists and has the same form as weitzman s optimal search policy

amnesty programs and the labor market outcomes of undocumented workers i investigate the effect of the 1997 nicaraguan adjustment and central american relief act nacara on employment and earnings of undocumented foreign born men from nicaragua cuba guatemala and el salvador who were eligible for amnesty under the act i find that nacara had a modest effect on the employment of these men raised their real wage by 3 percent and weekly earnings by 4 percent estimates show that nacara raised the wage of the target group without a high school degree by a statistically insignificant 1 percent and of those with high school or higher education by a statistically significant 5 percent

comparison of energy efficiency subsidies under market power abstract energy efficiency subsidies are very popular all over the world for energy conservation and emission reduction by using a game theory model this article captures the differences of two important types of subsidies fixed subsides and output subsidies some interesting conclusions are achieved and some social phenomena are rationally explained firstly increasing total subsidies increases the number of subsidized firms moreover fiercer competition produces more firms to be subsidized thus the number of subsidized firms depends on the competition in this industry secondly output subsidies achieve a higher consumer surplus and a lower producer surplus than do fixed subsidies therefore consumers like output subsidies while firms like fixed subsidies finally output subsidies achieve a more favorable environmental impact and subsidize more firms than do fixed subsidies that is the environmental effects of output subsidies dominate those of fixed subsidies in summary based on both the effects on the environment and the consumer surplus this article supports output subsidies and explains the advantages of output subsidies

not just a work permit eu citizenship and the consumption behavior of documented and undocumented immigrants this paper explores the impact of the 2007 european union enlargement on the consumption behavior of immigrant households using data from a unique italian survey and a difference in differences approach we find that the enlargement induced a significant consumption increase for the immigrant households from new member states both in the short and in the medium run this enlargement effect cannot be attributed to the mere legalization as it concerns both undocumented and documented immigrants albeit through different channels detailed information on immigrants legal status undocumented documented and sector of employment informal formal allows us to shed light on the exact mechanisms following the enlargement previously undocumented immigrants experienced an increase in the labor income by moving from the informal towards the formal economy whereas immigrants who were already working legally in italy benefitted from the increased probability of getting a permanent contract enhanced employment stability in turn reduced the uncertainty about future labor income leading to an increase in documented immigrants consumption expenditure

uncertain search a model of search among technologies of uncertain values in the standard search problem there is an infinite pool of items whose distribution of values is known a decision maker draws an item from the pool observes its value and decides whether to keep it or to draw another item he can keep only one item and he seeks the item with the largest value in the standard uncertainty resolution problem there is only one item and the value of that item remains uncertain even after it is drawn the decision maker sequentially collects observations on the value of the item and decides whether to keep the item discard the item or take another observation uncertain search marries the sequential drawing from a pool of items from the search literature with the unknown value of a drawn item from the uncertainty resolution literature presented in the context of technology adoption it considers drawing from a pool of new technologies whose values remain unknown even after being drawn the decision maker sequentially purchases information in order to bayesianly update

eating your own lunch protection through preemption recent discussions of management practices among successful high technology companies suggest that one key strategy for success is to eat your own lunch before someone else does the implication is that in intensely competitive or hypercompetitive markets firms with a leading position should aggressively cannibalize their own current advantages with next generation advantages before competitors step in to steal the market given the pace of technological and other types of change such strategy often requires creating next generation advantages while the current advantages are still profitable that is trading current profits for future market leadership we capture the tradeoff between a market leader s willingness to reap profits with its current set of advantages and its desire to maintain market leadership by investing in the next generation using a competitive model that determines the equilibrium launch time of a next generation advantage we find that in absence of lower launch costs for an

subsidies in carbon finance for promoting renewable energy development abstract faced with decreasing exhaustible nonrenewable resources and climate change resulting from the use of fossil energy it is urgent to accelerate the development of renewable energy but the development of renewable energy requires abundant financial support both from banks and governments this article considers bank loans to develop renewable energy and highlights the effects of government subsidies by using a microeconomic model and taking all stakeholders including the government banks and shareholders of the firm into consideration this study finds that government subsidies raise outputs and debt levels of renewable energy firms and improve shareholder value as well more importantly financial debts stimulate firms outputs but decrease the net profit per unit of debt due to the limited liability effects finally subsidy policy plays a critical role in renewable energy development because environmental efficiencies of subsidies decrease with the subsidy degree other valuable conclusions would be achieved if principal agent problem and other corporate governance factors are employed

immigration reform and the earnings of latino workers do employer sanctions cause discrimination this paper investigates whether employer sanctions for hiring undocumented workers introduced by the 1986 immigration reform and control act irca adversely affected the hourly earnings of latino workers in the southwestern u s we exploit the staggering of the sanctions and employee verification requirements across sectors to estimate this effect in particular irca s employer sanctions provisions were not extended to agricultural employers until two years after their imposition on non agricultural employers hence latino agricultural workers provide a control group against which to compare changes in the wages of latinos in non agricultural employment we find substantial pre post irca declines in the hourly earnings of latino non agricultural workers relative to latinos in agriculture this pattern however is considerably stronger for latino men than latina women we do not observe similar inter sectoral shifts in relative wages among non latino white workers in fact the relative wage changes for non latino white workers are of the opposite sign finally the pre post irca relative decline in latino non agricultural wages reverses the pre irca trend where we observe the relative earnings of latino non agricultural workers increasing

clicking on heaven s door the effect of immigrant legalization on crime we estimate the eect of legalization on the crime rate of immigrants by exploiting the italian policy framework as an ideal regression discontinuity design xed quotas of residence permits are available each year applications must be submitted electronically on specic click days and they are processed on a rst come rst served basis until the available quotas are exhausted by matching data on applicants including the timing of applications in milliseconds with restricted use criminal records for the year before and after click days we show that obtaining legal status reduces the probability of being reported for having committed a serious crime by 0 6 percentage points on average on a baseline crime rate of 1 percent this eect is driven by applicants that are allegedly employed by other immigrants as domestic workers but are most likely unemployed who exhibit the highest crime rate in the year before click days as well as the greatest reduction in crime after obtaining legal status by contrast applicants sponsored by rms exhibit a very low crime rate both before and after click days we conclude that undocumented immigrants confronting worse labor market opportunities are at a higher risk of committing crimes while they are also more responsive to legalization

immigration reform the effects of employer sanctions and legalization on wages the immigration reform and control act of 1986 irca represents an attempt to use labor market regulation to control illegal migration into the united states by imposing fines on employers who hire unauthorized workers sanctions lower wages directly because they act as a tax on hiring additional workers in addition irca legalized many longtime illegal aliens legalization affects wages by changing the relative supply of authorized and unauthorized workers this study estimates irca s impact on wages of manufacturing production workers in metropolitan areas and finds small but statistically significant effects sanctions lower wages while legalization raises them

something to talk about social spillovers in movie consumption we exploit the randomness of weather and the relationship between weather and moviegoing to quantify social spillovers in movie consumption instrumenting for early viewership with plausibly exogenous weather shocks captured in lasso chosen instruments we find that shocks to opening weekend viewership are doubled over the following five weekends our estimated momentum arises almost exclusively at the local level and we find no evidence that it varies with either ex post movie quality or the precision of ex ante information about movie quality suggesting that the observed momentum is driven in part by a preference for shared experience and not only by social learning

coming out of the shadows learning about legal status and wages from the legalized population the 1986 immigration reform and control act irca granted amnesty to approximately 1 7 million long term unauthorized workers in an effort to bring them out of the shadows and improve their labor market opportunities an analysis of wages using panel data for a sample of legalized men provides evidence that wage determinants are structurally different after amnesty for them but not for the comparison group as measured during the same time periods the wage penalty for being unauthorized is estimated to range from 14 to 24 the wage benefit of legalization under irca was approximately 6

how costly is mitigation of non co2 greenhouse gas emissions from agriculture a meta analysis this text reviews the assessments of marginal abatement costs of methane and nitrous oxide emissions from agriculture we use agricultural emissions and the corresponding prices collected from 21 studies that have assessed abatement potentials and costs using various modeling approaches and assumptions we first highlight the implications of the modeling approach for marginal abatement costs harmonized abatement rates for three emission prices 10 20 and 50 2005 tco2eq are regressed on variables that reflect various modeling assumptions and study characteristics in a second step the emission price is introduced as an explanatory variable when controlling for a few key characteristics of the studies the models explain an important share of the observed variability in abatement rates the type of modeling approach is found to have a significant effect in particular we find that equilibrium models lead to higher abatement rates for a given price the flexibility in nitrogen use and its effect on crop yields also plays a significant role in lowering marginal abatement costs the results of the second step indicate that the price elasticity of the abatement rate is about 0 6 this estimate is found to be robust to several specifications and consistent with previous assessments covering other economic sectors

information acquisition and the adoption of new technology the profitability of a new technology is rarely known with certainty at its announcement date consequently prior to making an adoption decision it behooves the firm considering the adoption of this innovation to reduce the level of uncertainty associated with its profitability the firm accomplishes this by sequentially gathering information updating its prior estimate of profitability in a bayesian manner quantifying the uncertainty regarding the innovation permits application of dynamic programming techniques criteria are derived which tell the firm when to stop collecting information and make the adoption decision it will be shown that it is optimal for the firm to continue to collect information until its estimate of profitability crosses one of two thresholds upon crossing the upper threshold the firm adopts the technology whereas the firm rejects the technology if the lower threshold is crossed the model predicts that even the manager who behaves optimally will occasionally adopt unprofitable technologies and reject profitable ones

when to adopt a service innovation nash equilibria in a competitive diffusion framework abstract we study the optimal timing of adoption of a service innovation that a new entrant firm brings to a market populated by two incumbent firms our analysis is based on a model of competitive diffusion dynamics that extends the monopolistic bass model to include customer churn processes as well as a potential market expansion driven by the innovation we obtain expressions for the time trajectories of the customer bases i e the numbers of customers that use old and new service processes for the competing firms as well as sharper closed form characterizations for the setting with a stable market and homogeneous imitation process in modeling competitive dynamics we consider settings where incumbents anticipate a potential failure of the innovation we use the trajectories for the customer bases to model an optimal adoption response problem faced by one of the incumbent firms when the adoption time for the other incumbent can be anticipated or is pre announced and analyze this problem in the absence of market expansion or intra generational customer churn using the optimal response results we provide the nash equilibrium analysis of the adoption decisions by competing incumbent firms and derive sufficient conditions for the now now now never and never never adoption equilibria we use the trading volume data from the foreign exchange markets to estimate the parameters of the competitive diffusion dynamics for our model and to conduct a numerical investigation of the impact of the uncertainty associated with the success of the innovation on the incumbents nash equilibrium adoption times

achieving the dream the effect of irca on immigrant youth postsecondary educational access this paper contributes to the existing literature on the effect of legal status on educational access among immigrant youth in the united states the immigration reform and control act irca of 1986 granted amnesty to undocumented immigrants who entered the united states before 1982 using a difference in differences framework i analyze the effect of this large amnesty program on immigrant youth s postsecondary educational access my main finding shows that immigrant youths who were granted amnesty under irca are more likely to enroll in postsecondary education

on the diffusion of new technology a game theoretic approach this paper is an attempt at a rigorous albeit not exceedingly general analysis of the diffusion of new technology in particular consider an industry composed of two firms each using the current best practice technology the firms are assumed to be operating at nash equilibrium output levels generating a market price given demand and profit allocations when a cost reducing innovation is announced each firm must determine when if ever to adopt it based in part upon the discounted cost of implementing the new technology and in part upon the behavior of the rival firm if either firm adopts before the other it can expect to make substantial profits at the expense of the other firm on the other hand the discounted sum of purchase price and adjustment costs may decline with the lengthening of the adjustment period as various quasi fixed factors become more easily variable therefore although waiting costs the firm more in terms of foregone profits it may save money on the cost of purchasing the new technology thus the firm must weigh the costs and benefits of delaying adoption as well as take account of its rival s strategic behavior

the influence of perceived uncertainty on entrepreneurial action in emerging renewable energy technology biomass gasification projects in the netherlands emerging renewable energy technologies cannot break through without the involvement of entrepreneurs who dare to take action amidst uncertainty the uncertainties that the entrepreneurs involved perceive will greatly affect their innovation decisions and can prevent them from engaging in innovation projects aimed at developing and implementing emerging renewable energy technologies this article analyzes how perceived uncertainties and motivation influence an entrepreneur s decision to act using empirical data on biomass gasification projects in the netherlands our empirical results show that technological political and resource uncertainty are the most dominant sources of perceived uncertainty influencing entrepreneurial decision making by performing a dynamic analysis we furthermore demonstrate that perceived uncertainties and motivation are not stable but evolve over time we identify critical factors in the project s internal and external environment which influence these changes in perceived uncertainties and motivation and describe how various interactions between the different variables in the conceptual model internal and external factors perceived uncertainty motivation and previous actions of the entrepreneurs positively or negatively influence the decision of entrepreneurs to continue entrepreneurial action we discuss how policymakers can use these insights for stimulating the development and diffusion of emerging renewable energy technologies

impact of bayesian learning and externalities on strategic investment we investigate the interplay between learning effects and externalities in the problem of competitive investments with uncertain returns we examine a game theoretic duopoly investment model in which i a firm can learn about the profitability of the investment by observing the performance of the first mover and ii externalities exist between the investments of two firms we find a region of a war of attrition between the two firms in which the interplay between externalities and learning gives rise to counterintuitive effects on investment strategies and payoffs in particular we find that contrary to the conventional war of attrition where an increase in benefits for the follower generally delays the first move an increase in the rate of learning which tends to benefit the follower can hasten the first investment this paper was accepted by james smith decision analysis

using food taxes and subsidies to achieve emission reduction targets in norway food production contributes considerably to global greenhouse gas ghg emissions animal products particularly meat from ruminants generally have higher ghg emissions than plant products over the last few decades the global per capita consumption of animal products has increased this has a negative impact on climate change land and water availability and human health we are faced with the two fold challenge of reducing ghg emissions while still producing enough food for our growing population part of the solution could be for consumers to change towards a more sustainable diet in this paper we take norway as a case study for estimating optimal taxes and subsidies on different food items which can change consumption patterns in order to reduce the ghg emissions derived from the average norwegian diet in the estimate we ensure that the average calorie intake with the new diet remains the same as with the current diet and factor in other health considerations our findings suggest that limited but useful emission reduction targets can be set with only a few changes in diets the methodology presented in this paper may be used to estimate optimal climate taxes and subsidies under different emission quantities taxes subsidies and health constraints

bad eggs learning by doing and the choice of technology we model long run economic development through technology adoption under scientific uncertainty about environmental effects there are four possible long run equilibria in a socially planned economy high growth adopt rapidly but abandon damaging technologies once revealed ddt cfcs cautious brake the introduction of new technologies to avoid mistakes genetically modified organisms no growth halt technological progress to preserve secondary knowledge and collapse adopt rapidly without ever abandoning damaging technologies in the base parameterization a short sighted social planner chooses the cautious strategy a far sighted planner chooses the high growth strategy unless damages are irreversible in which case the cautious strategy again dominates regulatory options in the market economy are investigated pollution taxes do not affect the firm s level of precaution if they can only be applied after the adopting firm has reaped the benefits however they do encourage the abandonment of damaging technologies liability rules do affect precaution but may lead to excessive caution or even a no growth trap

agricultural pollution and regulation how to subsidize agriculture agricultural pollution is extremely serious in china and agricultural output quantity subsidy makes it even worse this paper captures the impacts of agricultural subsidy including quantity subsidy and innovation subsidy on agricultural pollution agriculture output quantity total pollution or emission equilibrium price consumer and producer surplus government budget and social welfare are all addressed in this study the results show that emission reducing innovation subsidy is better than quantity subsidy because it reduces the pollution from agriculture and profits for the agricultural firm are higher under innovation subsidy than under quantity subsidy more importantly output quantity and consumer surplus under innovation subsidy are also larger than those under quantity subsidy if the subsidy rate is not too high this study finds that the importance of the environment to the consumer marginal emission and pollution tax will decrease output quantity consumer and producer surplus and social welfare however agricultural subsidy increases them furthermore this study indicates that innovation subsidy can alleviate the food quantity safety and quality of environment dilemma in agriculture