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Emissions Trading and Profitability: The Swedish Pulp and Paper Industry

Author

Listed:
  • 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)

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.

Suggested Citation

  • Runar Brannlund & Yangho Chung & Rolf Fare & Shawna Grosskopf, 1995. "Emissions Trading and Profitability: The Swedish Pulp and Paper Industry," Others 9506001, University Library of Munich, Germany.
    • 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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    References listed on IDEAS

    as
    1. repec:bla:scandj:v:94:y:1992:i:4:p:599-608 is not listed on IDEAS
    2. Runar Brännlund & Rolf Färe & Shawna Grosskopf, 1995. "Environmental regulation and profitability: An application to Swedish pulp and paper mills," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 6(1), pages 23-36, July.
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    More about this item

    Keywords

    environmental economics; natural resource economics; industry;
    All these keywords.

    JEL classification:

    • P - Political Economy and Comparative Economic Systems
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Z - Other Special Topics

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