Tradable Emission Permits Regulations: The Role of Product Differentiation
AbstractThis paper examines the role of product differentiation within the model of Sartzetakis (1997, 2004) and shows that consumer surplus may be reduced under a tradable emission permits system rather than a command and control system when there is a high degree of product differentiation or less competition between two firms. We also investigate comparative static effects of the degree of product differentiation on equilibrium output and abatement levels under the two regulatory regimes.
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Bibliographic InfoArticle provided by College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan in its journal International Journal of Business and Economics.
Volume (Year): 4 (2005)
Issue (Month): 3 (December)
command and control system; product differentiation; tradable emission permits system;
Find related papers by JEL classification:
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L5 - Industrial Organization - - Regulation and Industrial Policy
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
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- Hung, Nguyen Manh & Sartzetakis, Eftichios Sophocles, 1998. "Cross-Industry Emission Permits Trading," Journal of Regulatory Economics, Springer, vol. 13(1), pages 37-46, January.
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