Strategic Interaction Among Firms in Output and Emission Markets: A Unified Framework

Cap-and-trade (CAT) programs are nowadays a common tool used by authorities to regulate polluting emissions and tackle environmental problems such as Climate Change. In this chapter, we analyze the implications of firm’s strategic behavior in product and emission permit markets for the success of th...

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Detalles Bibliográficos
Autores: André García, Francisco Javier, Castro Lejarriaga, Luis Miguel De
Tipo de recurso: capítulo de libro
Fecha de publicación:2019
País:España
Institución:Universidad Complutense de Madrid (UCM)
Repositorio:Docta Complutense
Idioma:inglés
OAI Identifier:oai:docta.ucm.es:20.500.14352/94077
Acceso en línea:https://hdl.handle.net/20.500.14352/94077
Access Level:acceso abierto
Palabra clave:Emissions trading
Oligopoly
Market interaction
Cournot model
Stackelberg model
Microeconomía
5307.15 Teoría Microeconómica
Descripción
Sumario:Cap-and-trade (CAT) programs are nowadays a common tool used by authorities to regulate polluting emissions and tackle environmental problems such as Climate Change. In this chapter, we analyze the implications of firm’s strategic behavior in product and emission permit markets for the success of these policies. We survey the related literature focusing on the relevance of market structure and firms’ competition. We develop a simple but unifying setting to revisit some of the main academic results on the subject