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Technological choice under environmentalists’ participation in Emissions Trading Systems

Elias Asproudis and Maria José Gil-Moltó ()
Authors registered in the RePEc Author Service: Maria Jose Gil Molto

No 09/9, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: We model competition in an emissions trading system (ETS) as a game between two firms and environmental group. In a previous stage, firms endogenously choose their manufacturing technologies. Our results show that there is an inverted U-shape relationship between how polluting the chosen technology is and the degree of the environmentalists' impure altruism. Firms choose a less polluting technology in the presence of the environmentalists than in their absence only if they are characterised by intermediate degrees of impure altruism.

Keywords: ETS; Technology Choice; Induced Technological Change; Impure Altruism (search for similar items in EconPapers)
JEL-codes: L13 O31 Q30 (search for similar items in EconPapers)
Date: 2009-04
New Economics Papers: this item is included in nep-ene, nep-env and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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