000			03357cam a22005537a 4500
001			w30283
003			NBER
005			20221003144424.0
006			m o d
007			cr cnu||||||||
008			221003s2022 mau fo 000 0 eng d
040			_aMaCbNBER _beng _cMaCbNBER
100	1		_aCicala, Steve.
245	1	0	_aAdverse Selection as a Policy Instrument: _bUnraveling Climate Change / _cSteve Cicala, David Hémous, Morten G. Olsen.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2022.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w30283
500			_aJuly 2022.
520	3		_aThis paper applies principles of adverse selection to overcome obstacles that prevent the implementation of Pigouvian policies to internalize externalities. Focusing on negative externalities from production (such as pollution), we consider settings in which aggregate emissions are known, but individual contributions are unobserved by the government. We evaluate a policy that gives firms the option to pay a tax on their voluntarily and verifiably disclosed emissions, or pay an output tax based on the average rate of emissions among the undisclosed firms. The certification of relatively clean firms raises the output-based tax, setting off a process of unraveling in favor of disclosure. We derive sufficient statistics formulas to calculate the welfare of such a program relative to mandatory output or emissions taxes. We find that the voluntary certification mechanism would deliver significant gains over output-based taxation in two empirical applications: methane emissions from oil and gas fields, and carbon emissions from imported steel.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aAsymmetric and Private Information • Mechanism Design _2jelc
650		7	_aAsymmetric and Private Information • Mechanism Design _2jelc
084			_aD82 _2jelc
690		7	_aTaxation, Subsidies, and Revenue _2jelc
650		7	_aTaxation, Subsidies, and Revenue _2jelc
084			_aH2 _2jelc
690		7	_aInternational Fiscal Issues • International Public Goods _2jelc
650		7	_aInternational Fiscal Issues • International Public Goods _2jelc
084			_aH87 _2jelc
690		7	_aEnergy, Environmental, Health, and Safety Law _2jelc
650		7	_aEnergy, Environmental, Health, and Safety Law _2jelc
084			_aK32 _2jelc
690		7	_aEconomics of Regulation _2jelc
650		7	_aEconomics of Regulation _2jelc
084			_aL51 _2jelc
690		7	_aClimate • Natural Disasters and Their Management • Global Warming _2jelc
650		7	_aClimate • Natural Disasters and Their Management • Global Warming _2jelc
084			_aQ54 _2jelc
700	1		_aHémous, David.
700	1		_aOlsen, Morten G.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w30283.
856	4	0	_uhttps://www.nber.org/papers/w30283
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w30283
942			_2ddc _cW-PAPER
999			_c389912 _d348474