Skip to main content

Research Repository

Advanced Search

Is emission intensity or output U-shaped in the strictness of environmental policy?

Authors

Maria J.



Abstract

We show that, in a range of market conditions, an ever stricter environmental policy does not always lead to ever cleaner production methods and ever lower production of polluting goods. We consider an integrated technology, where firms can reduce their emission intensities in a continuous fashion. Analogous to the previous literature we find that firms' emission intensities can be U-shaped in the strictness of policy, but we show that this applies only under low profitability conditions. Under high profitability conditions, output levels are U-shaped in the strictness of the policy. The latter result is new in the literature. In the case where the U-shape arises in emission intensities, the minimum is reached where the marginal abatement cost curves intersect.

Citation

Dijkstra, B. R., & Gil-Moltó, M. J. (in press). Is emission intensity or output U-shaped in the strictness of environmental policy?. Journal of Public Economic Theory, https://doi.org/10.1111/jpet.12277

Journal Article Type Article
Acceptance Date Sep 21, 2017
Online Publication Date Nov 2, 2017
Deposit Date Nov 24, 2017
Publicly Available Date Nov 3, 2019
Journal Journal of Public Economic Theory
Print ISSN 1097-3923
Electronic ISSN 1467-9779
Publisher Wiley
Peer Reviewed Peer Reviewed
DOI https://doi.org/10.1111/jpet.12277
Keywords Abatement; Environmental taxation; Oligopoly; Marginal abatement costs
Public URL https://nottingham-repository.worktribe.com/output/891288
Publisher URL http://onlinelibrary.wiley.com/doi/10.1111/jpet.12277/abstract;jsessionid=2F11DD4FBEC111927AFFD646983D0CCD.f02t03? +
Additional Information This is the pre-peer reviewed version of the following article: Dijkstra BR, Gil-Moltó MJ. Is emission intensity or output U-shaped in the strictness of environmental policy? Journal of Public Economic Theory. 2017; 00:1–25. https://doi.org/10.1111/jpet.12277, which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/jpet.12277/abstract;jsessionid=2F11DD4FBEC111927AFFD646983D0CCD.f02t03? This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

Files





You might also like



Downloadable Citations