IDEAS home Printed from https://ideas.repec.org/a/bla/ausecp/v45y2006i2p169-178.html
   My bibliography  Save this article

Optimality Of Pre-Empting Regulations On Natural Resource Use

Author

Listed:
  • TIHOMIR ANCEV

Abstract

Firms are often confronted with regulations on their productive and commercial activities. In many instances a firm can take various actions to pre-empt regulations. This article determines the optimality of pre-emptive action for a firm subject to natural resource regulation. The regulation may be either fixed or relative to the production history. Dependent on the type of regulation, a firm can pre-empt by terminating its current use of resources and converting to other use or by building up the input use or output history in the period prior to regulation. It is shown that the optimal pre-emption decision depends on the extent and perceived probability of regulation, on the rate of discount and on technological characteristics of the production process including the alternative use of the resource. Copyright Blackwell Publishing Ltd/University of Adelaide and Flinders University 2006..

Suggested Citation

  • Tihomir Ancev, 2006. "Optimality Of Pre-Empting Regulations On Natural Resource Use," Australian Economic Papers, Wiley Blackwell, vol. 45(2), pages 169-178, June.
  • Handle: RePEc:bla:ausecp:v:45:y:2006:i:2:p:169-178
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-8454.2006.00285.x
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ausecp:v:45:y:2006:i:2:p:169-178. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.