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Pré-publication, Document de travail

Pollution Permits in Oligopolies: The role of abatement technologies

Abstract : This paper examines, under imperfect competition, the effect of a cap-and-trade system on industry profits and the interaction between cap-and-trade system and the evolution of the market structure, both depending on the type of abatement technologies used by firms. Two extreme types are considered: end-of-pipe abatement technology-meaning, filtration and other mechanisms that are largely independent of production decisionsand process-integrated technology, which entails integrating cleaner or more energy-efficient methods into production. This paper prescribes that the distribution of free allocation should depend on the kind of abatement technologies. Finally, 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.
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Pré-publication, Document de travail
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Contributeur : Jerome Pouyet Connectez-vous pour contacter le contributeur
Soumis le : lundi 30 août 2021 - 14:55:03
Dernière modification le : jeudi 21 octobre 2021 - 15:16:24


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  • HAL Id : hal-03328947, version 1


Clémence Christin, Jean-Philippe Nicolaï, Jérôme Pouyet. Pollution Permits in Oligopolies: The role of abatement technologies. 2021. ⟨hal-03328947⟩



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