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

  • Antoine Mandel

    ()

    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

This paper focuses on 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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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00155783.

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Date of creation: May 2007
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Handle: RePEc:hal:cesptp:halshs-00155783
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00155783
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