Clean technology adoption and its influence on tradeable emission permit prices

María Eugenia Sanin Vázquez and Skerdilajda Zanaj

No 2009029, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: In this paper we give an example in which the price of tradeable emission permits increases despite firms' adoption of a less polluting technology. This is in contrast with Montero (2002) and Parry (1998), among others. If two Counot players switch to a cleaner technology, the price for permits may increase due to an increase in the net demand for permits and a decrease in net supply of permits after the clean technology is adopted. This is only the case when output demand is elastic.

Keywords: environmental innovation; tradable emission permits; Cournot interaction (search for similar items in EconPapers)
JEL-codes: D43 L13 Q55 (search for similar items in EconPapers)
Date: 2009-04-01
New Economics Papers: this item is included in nep-ene, nep-env, nep-ino and nep-res
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: A Note on Clean Technology Adoption and its Influence on Tradeable Emission Permits Prices (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2009029

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