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Changes in the firms behavior after the opening of an allowance market

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Author Info
Antoine Mandel () (Centre d'Economie de la Sorbonne)

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Abstract

This paper focuses on the influence of the influence of the opening of a market of allowances, such as the European Union Emission Trading Scheme, on the general equilibrium of an economy. Assuming there existed an equilibrium before the opening of this new market, we describe the changes in the firms behavior which guarantee that an equilibrium can be reached in the enlarged economy. The existence of an equilibrium in this framework can then be interpreted as ensuring the economy has the capacity to undergo the opening of allowances without too important modifications in its organisation.

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File URL: ftp://mse.univ-paris1.fr/pub/mse/CES2007/B07027.pdf
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Publisher Info
Paper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number b07027.

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Length: 28 pages
Date of creation: May 2007
Date of revision:
Handle: RePEc:mse:cesdoc:b07027

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Web page: http://ces.univ-paris1.fr/
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Related research
Keywords: General equilibrium theory; existence of equilibrium; externalities; increasing returns; markets of allowances.;

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Find related papers by JEL classification:
C62 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Existence and Stability Conditions of Equilibrium
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
D62 - Microeconomics - - Welfare Economics - - - Externalities
Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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  1. Antoine Mandel, 2009. "Changes in the firms behavior after the opening of markets of allowances," Economic Theory, Springer, vol. 40(1), pages 1-25, July. [Downloadable!] (restricted)
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