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Emissions Trading and Profitability: The Swedish Pulp and Paper Industry

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Author Info

  • Runar Brannlund

    (Univ. of Umea)

  • Yangho Chung

    (S. Illinois Univ. at Carbondale)

  • Rolf Fare

    (S. Illinois Univ. at Carbondale)

  • Shawna Grosskopf

    (S. Illinois Univ. at Carbondale)

Registered author(s):

    Abstract

    The purpose of this paper is to develop models with and without emissions trading and to compare industry profits under the two regimes. The model in which emissions trading is permitted is a nonparametric industry frontier model in the spirit of Fare, Grosskopf and Li (1992). It is relative to this model that industry profit is computed. This profit is compared to the profit without emissions trading to give an estimate of the potential gains that can be realised by allowing for emissions trading. The model, which is applied to data for the Swedish pulp and paper industry, thus provides evidence as to the cost efficiency of the prevailing individual regulations for this particular industry.

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    File URL: http://128.118.178.162/eps/othr/papers/9506/9506001.pdf
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    Bibliographic Info

    Paper provided by EconWPA in its series Others with number 9506001.

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    Length: 14 pages
    Date of creation: 30 Jun 1995
    Date of revision:
    Handle: RePEc:wpa:wuwpot:9506001

    Note: Scientific Workplace, Pentium PC, HP 4/MV (postscript), pages: 14; figures: none; tables: 5 (in body). Two files were FTP'ed: binary .dvi and ASCII input file. Paper was compiled for A4 paper, but there is no loss printing to letter.
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    Web page: http://128.118.178.162

    Related research

    Keywords: environmental economics; natural resource economics; industry;

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    References

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    1. Fare, Rolf & Grosskopf, Shawna & Li, Sung-Ko, 1992. " Linear Programming Models for Firm and Industry Performance," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(4), pages 599-608.
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    Cited by:
    1. Yangho Chung & Rolf Fare, 1995. "Productivity and Undesirable Outputs: A Directional Distance Function Approach," Microeconomics 9511002, EconWPA, revised 08 Nov 1995.

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