A Note on Market Power in an Emission Permits Market with Banking
AbstractIn this paper, we investigate the effect of market power on equilibrium path of an emission permits market in which firms can bank current permits for use in later periods. In particular, we study the market equilibrium for a large (potentially dominant) firm and competitive fringe with rational expectations. We characterize the equilibrium solution for different permits allocations and discuss the large firm’s stock-holding constraints needed for credible market manipulation. Copyright Springer 2005
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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental & Resource Economics.
Volume (Year): 31 (2005)
Issue (Month): 2 (06)
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Web page: http://www.springerlink.com/link.asp?id=100263
banking; market power; pollution permit; Q52; L13;
Other versions of this item:
- Matti Liski & Juan-Pablo Montero, 2004. "A Note on Market Power in an Emission Permits Market with Banking," Working Papers 0405, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Matti Liski & Juan-Pablo Montero, 2003. "A Note on Market Power in an Emission Permits Market with Banking," Documentos de Trabajo 236, Instituto de Economia. Pontificia Universidad Católica de Chile..
- Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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