Emissions Trading and Profitability: The Swedish Pulp and Paper Industry
Runar Brannlund,
Yangho Chung,
Rolf Fare and
Shawna Grosskopf Additional contact information Runar Brannlund: Univ. of Umea
Yangho Chung: S. Illinois Univ. at Carbondale
Rolf Fare: S. Illinois Univ. at Carbondale
Shawna Grosskopf: S. Illinois Univ. at Carbondale
Abstract:
The purpose of this paper is to develop models with and without emissions trading and to compare industry profits under the two regimes. The model in which emissions trading is permitted is a nonparametric industry frontier model in the spirit of Fare, Grosskopf and Li (1992). It is relative to this model that industry profit is computed. This profit is compared to the profit without emissions trading to give an estimate of the potential gains that can be realised by allowing for emissions trading. The model, which is applied to data for the Swedish pulp and paper industry, thus provides evidence as to the cost efficiency of the prevailing individual regulations for this particular industry.
Keywords:environmental economics; natural resource economics; industry (search for similar items in EconPapers) JEL-codes:PQZ (search for similar items in EconPapers) Date: 1995-06-30 Note: Scientific Workplace, Pentium PC, HP 4/MV (postscript), pages: 14; figures: none; tables: 5 (in body). Two files were FTP'ed: binary .dvi and ASCII input file. Paper was compiled for A4 paper, but there is no loss printing to letter. View list of referencesView citations in EconPapers