Technological choice under environmentalists’ participation in Emissions Trading Systems
AbstractWe model competition in an emissions trading system (ETS) as a game between two firms and environmental group. In a previous stage, firms endogenously choose their manufacturing technologies. Our results show that there is an inverted U-shape relationship between how polluting the chosen technology is and the degree of the environmentalists' impure altruism. Firms choose a less polluting technology in the presence of the environmentalists than in their absence only if they are characterised by intermediate degrees of impure altruism.
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Bibliographic InfoPaper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 09/9.
Date of creation: Apr 2009
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Find related papers by JEL classification:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-18 (All new papers)
- NEP-ENE-2009-04-18 (Energy Economics)
- NEP-ENV-2009-04-18 (Environmental Economics)
- NEP-RES-2009-04-18 (Resource Economics)
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- Böhringer, Christoph & Moslener, Ulf & Sturm, Bodo, 2006.
"Hot Air for Sale: A Quantitative Assessment of Russia's Near-Term Climate Policy Options,"
ZEW Discussion Papers
06-16, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Christoph Böhringer & Ulf Moslener & Bodo Sturm, 2007. "Hot air for sale: a quantitative assessment of Russia’s near-term climate policy options," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 38(4), pages 545-572, December.
- Maria J. Gil-Molto & Bouwe Dijkstra, 2011. "Strictness of Environmental Policy and Investment in Abatement," Discussion Papers in Economics 11/35, Department of Economics, University of Leicester.
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