Emission Permit Trading Between Imperfectly Competitive Product Markets
AbstractThe present paper analyzes the efficiency of emission permit trading between two imperfectly competitive product markets. Even if firms are price takers in permit markets, the integration of permit markets can decrease welfare because of imperfect competition in product markets. If there is asymmetric information between the regulator and firms, the integration of the permit markets could have a positive effect related to the flexibility of an integrated market; this flexibility can justify integrating the permit markets.
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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 50 (2011)
Issue (Month): 3 (November)
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Web page: http://www.springerlink.com/link.asp?id=100263
Emission permit market; Demand uncertainty; Imperfect competition; Market integration; D82; D43; L13;
Other versions of this item:
- Guy MEUNIER, 2011. "Emission permit trading between imperfectly competitive product markets," Working Papers 40770, Institut National de la Recherche Agronomique, France.
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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