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Technological choice under environmentalists’ participation in Emissions Trading Systems

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  • Elias Asproudis
  • Maria José Gil-Moltó

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Abstract

We 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 Info

Paper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 09/9.

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Date of creation: Apr 2009
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Handle: RePEc:lec:leecon:09/9

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Related research

Keywords: ETS; Technology Choice; Induced Technological Change; Impure Altruism;

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  1. 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.
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Cited by:
  1. Asproudis, Elias, 2011. "Trade union structure with environmental concern and firms' technological choice," MPRA Paper 28767, University Library of Munich, Germany.
  2. 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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