The marginal price elasticities estimated by Martinez-Espineira conforms to expectation. The price specification that accounts for the changing proportion of water users in each block yields a higher elasticity (-0. 47) compared to the spec ification ignoring this feature of the data. However, this difference is not found to be statistically significant, a result attributed to the low power of the test (small sample size limiting the accuracy of estimates). In conclusion, the paper provides a theoretically correct price specification for demand functions under block pricing and aggregate...

One of the central tenets of this book is that governmental policies must be designed to take into account market characteristics and environmental phenomena - simultaneously. This volume contains a new research effort of the Fondazione Eni Enrico Mattei' and explores the theoretical underpinnings of environmental policy in a sub-optimal world.
Topics considered link economic issues (oligopolistic market structures, firm heterogeneity, and the strategic behavior of governments) to environmental issues (emission abatements, cleaner technologies, and environmental taxation).
The...