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Abstract This paper discusses market power effects in ambient permit markets. We consider a dominant firm in a position to exert market power in several markets. A first conclusion is that the distortion observed on manipulated markets spreads to other markets. We find that the manipulated...
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Permit markets lead polluting firms to purchase abatement goods from an eco-industry which is often concentrated. This paper studies the consequences of this sort of imperfectly competitive eco-industry on the equilibrium choices of the competitive polluting firms. It then characterizes the...
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[eng] Pollution Permit Markets and Imperfect Competition Pollution permit markets offer attractive properties if there are competitive. Moreover, this result is not valid anymore if the pollution permit market or output markets are not competitive. The aim of this article is to show in which...
Persistent link: https://www.econbiz.de/10011147182
This paper discusses market power effects in ambient permit markets. We consider a dominant firm in a position to exert market power in several markets. A first conclusion is that the distortion observed on manipulated markets spreads to other markets. We find that the manipulated prices could...
Persistent link: https://www.econbiz.de/10005086815
This paper analyzes the effects of pollution permit markets on equilibrium employment in a wage-setting/price-setting (WS–PS) model. The employment level is determined according to different methods of financing unemployment benefits: a wage tax or the revenue from a pollution permit auction....
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