IDEAS home Printed from https://ideas.repec.org/a/ijb/journl/v4y2005i3p249-261.html
   My bibliography  Save this article

Tradable Emission Permits Regulations: The Role of Product Differentiation

Author

Listed:
  • Sang-Ho Lee

    (Department of Economics, Chonnam National University, Korea)

  • Sang-Ha Park

    (Department of Social Welfare, Naju College, Korea)

Abstract

This paper examines the role of product differentiation within the model of Sartzetakis (1997, 2004) and shows that consumer surplus may be reduced under a tradable emission permits system rather than a command and control system when there is a high degree of product differentiation or less competition between two firms. We also investigate comparative static effects of the degree of product differentiation on equilibrium output and abatement levels under the two regulatory regimes.

Suggested Citation

  • Sang-Ho Lee & Sang-Ha Park, 2005. "Tradable Emission Permits Regulations: The Role of Product Differentiation," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 4(3), pages 249-261, December.
  • Handle: RePEc:ijb:journl:v:4:y:2005:i:3:p:249-261
    as

    Download full text from publisher

    File URL: http://www.ijbe.org/table%20of%20content/pdf/vol4-3/vol4-3-06.pdf
    Download Restriction: no

    File URL: http://www.ijbe.org/table%20of%20content/abstract/Vol.4/No.3/06.htm
    Download Restriction: no

    References listed on IDEAS

    as
    1. Stranlund, John K. & Dhanda, Kanwalroop Kathy, 1999. "Endogenous Monitoring and Enforcement of a Transferable Emissions Permit System," Journal of Environmental Economics and Management, Elsevier, vol. 38(3), pages 267-282, November.
    2. Hung, Nguyen Manh & Sartzetakis, Eftichios Sophocles, 1998. "Cross-Industry Emission Permits Trading," Journal of Regulatory Economics, Springer, vol. 13(1), pages 37-46, January.
    3. Malueg, David A., 1990. "Welfare consequences of emission credit trading programs," Journal of Environmental Economics and Management, Elsevier, vol. 18(1), pages 66-77, January.
    4. Eftichios Sartzetakis, 2004. "On the Efficiency of Competitive Markets for Emission Permits," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(1), pages 1-19, January.
    5. Eftichios Sartzetakis, 1997. "Tradeable emission permits regulations in the presence of imperfectly competitive product markets: Welfare implications," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 9(1), pages 65-81, January.
    6. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
    7. Severin Borenstein, 1988. "On the Efficiency of Competitive Markets for Operating Licenses," The Quarterly Journal of Economics, Oxford University Press, vol. 103(2), pages 357-385.
    8. Malik, Arun S., 1990. "Markets for pollution control when firms are noncompliant," Journal of Environmental Economics and Management, Elsevier, vol. 18(2), pages 97-106, March.
    9. Keeler, Andrew G., 1991. "Noncompliant firms in transferable discharge permit markets: Some extensions," Journal of Environmental Economics and Management, Elsevier, vol. 21(2), pages 180-189, September.
    10. Malik, Arun S., 2002. "Further Results on Permit Markets with Market Power and Cheating," Journal of Environmental Economics and Management, Elsevier, vol. 44(3), pages 371-390, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    command and control system; product differentiation; tradable emission permits system;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

    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:ijb:journl:v:4:y:2005:i:3:p:249-261. 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: (Yi-Ju Su). General contact details of provider: http://edirc.repec.org/data/cbfcutw.html .

    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.