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Clean technology adoption and its influence on tradeable emission permit prices.

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Sanin Vazquez, Maria Eugenia [UCL] Zanaj, Skerdilajda [Université du Luxembourg]

In this paper we give an example in which the price of tradeable emission permits increases despite firms' adoption of a less polluting technology. This is in contrast with Montero (2002) and Parry (1998), among others. If two Counot players switch to a cleaner technology, the price for permits may increase due to an increase in the net demand for permits and a decrease in net supply of permits after the clean technology is adopted. This is only the case when output demand is elastic.

Document type Document de travail (Working Paper)
Access type Accès libre
Publication date 2009
Language Anglais
Number of pages 5 pages
Collection Core Discussion Papers - 2009/29
Affiliations UCL - EUEN/CORE - Center for operations research and econometrics
Université du Luxembourg - CREA
Keywords Environmental innovation ; Tradable emission permits ; Cournot interaction
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Bibliographic reference Sanin Vazquez, Maria Eugenia ; Zanaj, Skerdilajda. Clean technology adoption and its influence on tradeable emission permit prices.. Core Discussion Papers ; 2009/29 (2009) 5 pages
Permanent URL http://hdl.handle.net/2078.1/22746