Registro completo |
Provedor de dados: |
AgEcon
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País: |
United States
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Título: |
Tradable Permits vs Ecological Dumping
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Autores: |
Antoniou, Fabio
Hatzipanayotou, Panos
Koundouri, Phoebe
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Data: |
2010-03-15
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Ano: |
2010
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Palavras-chave: |
Strategic Environmental Policy
Tradable Permits
Race to the top
Environmental Economics and Policy
Q58
F12
F18
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Resumo: |
In this paper we examine an alternative policy scenario, where governments allow polluting firms to trade permits in a strategic environmental policy model. We demonstrate, among other things, that with no market power in the permits market, governments of the exporting firms do not have an incentive to under-regulate pollution in order to become more competitive. This strategic effect is reversed and leads to a welfare level closer to the cooperative one and strictly higher to that when permits are non-tradable. Allowing for market power in the permits market, the incentive to under-regulate pollution re-appears regardless of whether permits are tradable or not. With tradable permits, however, the incentive to under-regulate pollution is comparatively weaker relative to the case of non-tradable permits. This entails potential benefits for the exporting firms and countries since the prisoners’ dilemma is moderated.
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Tipo: |
Working or Discussion Paper
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Idioma: |
Inglês
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Identificador: |
http://purl.umn.edu/59374
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Relação: |
Fondazione Eni Enrico Mattei (FEEM)>Sustainable Development Papers
SD
2.2010
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Formato: |
31
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