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Quotas, Alternative Technologies, and Immiserization

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  • Hennessy, David A.

Abstract

This paper studies the relationships between technical change and welfare under a production quota regime. The conditions for producer impoverishment and quota owner impoverishment under technical change are identified. Whether the relative efficiency of a marketable quota regime is robust to the choice of technologies is also considered, as is the immiserization motive for banning a technology. The paper demonstrates that two or more technologies may exist in equilibrium and that the adoption of a technology may depend on the marketability of quota.

Suggested Citation

  • Hennessy, David A., 1995. "Quotas, Alternative Technologies, and Immiserization," Staff General Research Papers Archive 5079, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:5079
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