Competitive permit markets and vertical structures: the relevance of imperfectly competitive eco-industries
Sonia Schwartz
(1)
,
Hubert Stahn
(2, 3)
Sonia Schwartz
- Fonction : Auteur
- PersonId : 20142
- IdHAL : sonia-schwartz
- ORCID : 0000-0002-1528-200X
- IdRef : 083659714
Résumé
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 second-best pollution cap. By comparing this situation to one of perfect competition, we show that Cournot competition on the abatement good market contributes not only to a nonoptimal level of emission reduction but also to a higher permit price, which reduces the production level. These distortions increase with market power, measured by the margin taken by the noncompetitive firms, and suggest a second-best larger pollution cap.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Competitive permit markets and vertical structures: the relevance of imperfectly competitive eco-industries
|
Résumé |
en
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 second-best pollution cap. By comparing this situation to one of perfect competition, we show that Cournot competition on the abatement good market contributes not only to a nonoptimal level of emission reduction but also to a higher permit price, which reduces the production level. These distortions increase with market power, measured by the margin taken by the noncompetitive firms, and suggest a second-best larger pollution cap.
|
Auteur(s) |
Sonia Schwartz
1
, Hubert Stahn
2, 3
1
CERDI -
Centre d'Études et de Recherches sur le Développement International
( 945 )
- 65 boulevard François Mitterrand, 63009 Clermont-Ferrand
- France
2
EHESS -
École des hautes études en sciences sociales
( 99539 )
- 54, boulevard Raspail 75006 Paris
- France
3
AMSE -
Aix-Marseille Sciences Economiques
( 526949 )
- 5-9 Boulevard Bourdet
CS 50498
13205 Marseille Cedex 1
- France
|
Langue du document |
Français
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Non spécifiée
|
Date de publication |
2014
|
Volume |
16
|
Numéro |
1
|
Commentaire |
Corresponding publications
Working Paper | Competitive Permit Markets and Vertical Structures: The Relevance of Imperfect Competitive Eco-Industries. 2010. 〈halshs-00501831〉
|
Page/Identifiant |
69-95
|
Domaine(s) |
|
Référence interne |
|
Mots-clés |
pt
cerdi
|
DOI | 10.1111/jpet.12048 |
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