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accelerated depreciation adopt the cleaner aggregate emissions analysis corner solution cost of adoption damage is increasing declining marginal damage distortion Downing and White dynamic efficiency economic instruments effect on aggregate emissions in period emissions is set Environmental Economics equation equilibrium level firms adopt firms is small firms is sufficiently firms that adopt gain from adoption incentives for adopting incentives for technological increasing in aggregate individual firm integer interior June 1995 June level of adoption level of emissions license fee marginal abatement cost md(e Milliman and Prince number of firms optimal paper patent holder patented innovation Pigouvian pricing rule polluting firms pollution control equipment price in response price of emissions problem public innovation rational expectations equilibrium regulator returns to scale schedule second-best pricing policies set according shaded area single firm social gain social optimum solution standard Pigouvian rule technological change technology adoption decisions unit of emissions universal adoption World Bank