The effect of emission charges on output and emissions in dynamic Cournot duopoly
| Autor: | Charles Perrings, Robert Mamada |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Computer Science::Computer Science and Game Theory
Economics and Econometrics Astrophysics::High Energy Astrophysical Phenomena 05 social sciences Economics Econometrics and Finance (miscellaneous) 0211 other engineering and technologies Astrophysics::Cosmology and Extragalactic Astrophysics 02 engineering and technology Cournot competition Microeconomics Market structure 0502 economics and business Economics 021108 energy 050207 economics Monopoly Duopoly Astrophysics::Galaxy Astrophysics |
| Zdroj: | Economic Analysis and Policy. 66:370-380 |
| ISSN: | 0313-5926 |
| Popis: | We consider the effect of emission charges on market structure, output, and emissions in Cournot competition. Assuming myopic decision making and a partial adjustment process, we analyze the impact of emission charges on the stability of duopoly/monopoly and on the level of emissions. We show that where marginal emission charges are increasing in the level of emissions, duopoly is stable. However, where marginal emission charges are decreasing in emissions, duopoly is unstable, and the system converges on monopoly. Equilibrium output and emissions are also shown to be higher under cost structures favoring monopoly than under cost structures favoring duopoly. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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