Pollution Permits, Imperfect Competition and Abatement Technologies

Arbeitspapier

Under imperfect competition, the effect of a cap-and-trade system on indus- try profits depends on the type of abatement technology that is used by firms: industries that use process-integrated technologies are more affected than those using end-of-pipe abatement technologies. The interaction between environmental policy and the evolution of the market structure is then studied. In particular, a reserve of pollution permits for new entrants is justified when the industry uses a process-integrated abatement technology, while a system with a preemption right may be justified in the case of end-of-pipe abatement technology.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Economics Working Paper Series ; No. 13/186

Classification and Topics

• Classification: Wirtschaft ; Oligopoly and Other Imperfect Markets ; Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling ; Environmental Economics: Government Policy
• Subject: Cap-and-trade system ; imperfect competition ; abatement technologies

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Christin, Clémence ; Nicolaï, Jean-Philippe ; Pouyet, Jerome
• Event: Veröffentlichung
• (who): ETH Zurich, CER-ETH - Center of Economic Research
• (where): Zurich
• (when): 2013

Further information

• DOI: doi:10.3929/ethz-a-010018836
• Handle: http://hdl.handle.net/10419/171629
• Last update: 10.03.2025, 11:43 AM CET