Equilibrium with a Market of Permits

In this paper we present the main results of three original studies on the equilibrium with a market of tradeable permits in a static framework. In first study, we have considered an international equilibrium of two countries which depend on the quantity of permits to each country. The allocation is efficient if and only if it is proportional to efficient labor. A redistribution in favor of the less developed country implies a redistribution to this country but leads to a dilemma with efficiency. In the second study, we analyze the consequences of the choice between giving free permits to firms and other possibilities. We show that for equalizing incomes of production factors with there marginal productivities, each factor should receive a quantity of free permits proportional to its contribution to production. In the third study, we consider the partial equilibrium of an industry where each firm is characterized by a parameter combining production efficiency and pollution effect. We define a theoretical indicator of environmental efficiency and we analyze its properties.

[1]  Robert W. Hahn,et al.  Economic Prescriptions for Environmental Problems: How the Patient Followed the Doctor's Orders , 1989 .

[2]  Wallace E. Oates,et al.  The theory of environmental policy , 1976 .

[3]  A. Cavaliere,et al.  Price Competition with Information Disparities in a Vertically Differentiated Duopoly , 2004 .

[4]  Sergio Currarini,et al.  Coalition Formation in Games Without Synergies , 2004, IGTR.

[5]  R. Noll.  Implementing Marketable Emissions Permits , 1982 .

[6]  Tetsuo Ono,et al.  The Effects of Emission Permits on Growth and the Environment , 2007 .

[7]  Shao Chin Sung,et al.  Simple Priorities and Core Stability in Hedonic Games , 2004, Soc. Choice Welf..

[8]  Rainer Marggraf,et al.  Valuation of Ecosystem Services Provided by Biodiversity Conservation: An Integrated Hydrological and Economic Model to Value the Enhanced Nitrogen Retention in Renaturated Streams , 2004 .

[9]  J. Mortensen,et al.  David W. Pearce and R. Kerry Turner, Economics of Natural Resources and the Environment. London: Harvester Wheatsheaf, 1990; 378 s. $ 22.95. , 1991 .

[10]  Terry M. Dinan,et al.  Who Gains and Who Pays under Carbon-Allowance Trading? The Distributional Effects of Alternative Policy Designs , 2000 .

[11]  J. Dales,et al.  Pollution, Property, and Prices , 1969 .

[12]  C.A.K. Lovell,et al.  Multilateral Productivity Comparisons When Some Outputs are Undesirable: A Nonparametric Approach , 1989 .

[13]  M. Cropper,et al.  Environmental Economics: A Survey , 1992 .

[14]  Monica Eberle,et al.  Theoretical topics in ecological economics , 2003 .

[15]  Philippe Michel,et al.  Intergenerational Altruism and the Environment , 1999 .

[16]  B. Jaggi,et al.  AN EXAMINATION OF THE IMPACT OF POLLUTION PERFORMANCE ON ECONOMIC AND MARKET PERFORMANCE: PULP AND PAPER FIRMS , 1992 .

[17]  Nancy L. Stokey.  Are There Limits to Growth , 1998 .

[18]  M. S. Taylor,et al.  North-South Trade and the Environment , 1994 .

[19]  Matteo Manera,et al.  Modelling Dynamic Conditional Correlations in Wti Oil Forward and Futures Returns , 2004 .

[20]  T. Tietenberg.  Lessons from Using Transferable Permits to Control Air Pollution in the United States , 1999 .

[21]  W. Montgomery,et al.  Markets in Licenses and Efficient Pollution Control Programs" Journal of Economic Theory , 1972 .

[22]  T. Tietenberg.  The Tradable Permits Approach to Protecting the Commons: What Have We Learned? , 2002 .

[23]  Pierre-André Jouvet,et al.  A theoretical measure of environmental efficiency , 2003 .

[24]  John C. V. Pezzey,et al.  Distributing the Value of a Country’s Tradeable Carbon Permits , 2001 .

[25]  J. Bergh.  Handbook of Environmental and Resource Economics , 1999 .

[26]  I. Parry.  Are Tradable Emissions Permits a Good Idea , 2002 .

[27]  Rabah Amir,et al.  Merger Performance Under Uncertain Efficiency Gains , 2003 .