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A note the cost of pollution abatement

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  • Thierry Bréchet
  • Pierre-André Jouvet

Abstract

The purpose of the article is to analyse the consequences of the constraint of shareholder value on the wage level and equilibrium unemployment rate. We will relate the new program of maximization of the firm, as well as the one of the trade union. We obtain an increase of the unemployment rate when progressing from a maximization of profit to a maximization of the EVA. The unemployment rate is also now depending on others financial variables.

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File URL: http://economix.fr/pdf/dt/2007/WP_EcoX_2007-15.pdf
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Bibliographic Info

Paper provided by University of Paris West - Nanterre la Défense, EconomiX in its series EconomiX Working Papers with number 2007-15.

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Length: 16 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:drm:wpaper:2007-15

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Keywords: innovation; pollution abatement cost; production function; environmental regulation;

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  1. McKitrick, Ross, 1999. "A Derivation of the Marginal Abatement Cost Curve," Journal of Environmental Economics and Management, Elsevier, vol. 37(3), pages 306-314, May.
  2. BRECHET, Thierry & MICHEL, Philippe, . "Environmental performance and equilibrium," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -2056, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Stavins, Robert & Jaffe, Adam & Newell, Richard, 2004. "A Tale of Two Market Failures: Technology and Environmental Policy," Discussion Papers, Resources For the Future dp-04-38, Resources For the Future.
  4. Requate, Till & Unold, Wolfram, 2003. "Environmental policy incentives to adopt advanced abatement technology:: Will the true ranking please stand up?," European Economic Review, Elsevier, Elsevier, vol. 47(1), pages 125-146, February.
  5. Fischer, Carolyn & Parry, Ian W. H. & Pizer, William A., 2003. "Instrument choice for environmental protection when technological innovation is endogenous," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 523-545, May.
  6. Karen Palmer & Wallace E. Oates & Paul R. Portney, 1995. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 9(4), pages 119-132, Fall.
  7. Montero, Juan-Pablo, 2002. "Permits, Standards, and Technology Innovation," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 23-44, July.
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