Marketable Pollution Permits in Oligopolistic Markets with Transaction Costs
Anna Nagurney () and
Kanwalroop Kathy Dhanda
Additional contact information
Anna Nagurney: Department of Finance and Operations Management, School of Management, University of Massachusetts, Amherst, Massachusetts 01003
Kanwalroop Kathy Dhanda: School of Business Administration, University of Portland, 5000 North Willamette Boulevard, Portland, Oregon 97203-5798
Operations Research, 2000, vol. 48, issue 3, 424-435
Abstract:
In this paper, we present a variational inequality framework for the modeling, qualitative analysis, and computation of equilibrium patterns in multiproduct, multipollutant oligopolistic markets with marketable pollution permits in the presence of transaction costs. The model deals explicitly with spatial differentiation and also guarantees that the imposed environmental quality standards are met through the initial allocation of licenses. An algorithm is proposed, with convergence results, to compute the profit-maximized quantities of the oligopolistic firms' products and the quantities of emissions, along with the equilibrium allocation of licenses and their prices. Numerical examples are included to illustrate this approach.
Keywords: Environment: marketable pollution permits; Economics: oligopolistic markets with transaction costs (search for similar items in EconPapers)
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)
Downloads: (external link)
http://dx.doi.org/10.1287/opre.48.3.424.12429 (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:inm:oropre:v:48:y:2000:i:3:p:424-435
Access Statistics for this article
More articles in Operations Research from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().