Emissions Trading and the Optimal Timing of Production
Karl-Martin Ehrhart (),
Christian Hoppe (),
Joachim Schleich and
Stefan Seifert
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Karl-Martin Ehrhart: Universitaet Karlsruhe, Postal: RZ Zirkel 2 D-76128 Karlsruhe
Christian Hoppe: Universitaet Karlsruhe, Postal: RZ Zirkel 2 D-76128 Karlsruhe
Stefan Seifert: Universitaet Karlsruhe, IWM, Postal: Englerstraße 14, D-76128 Karlsruhe
No 04-55, Sonderforschungsbereich 504 Publications from Sonderforschungsbereich 504, Universität Mannheim, Sonderforschungsbereich 504, University of Mannheim
Abstract:
We investigate the problem of optimally timing production schedules in an emissions trading regime that does not allow the transfer of unused allowances into future periods. We show that companies that produce storable goods partially shift the production to prior periods and imitate - by storing the output - emission rights banking. Competition distortions arise sectorally and intersectorally.
Pages: 7 pages
Date: 2004-12-03
New Economics Papers: this item is included in nep-env
Note: Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.
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