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Technological choice under environmentalists' participation in emissions trading systems

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posted on 2010-03-02, 11:22 authored by Elias Asproudis, Maria José Gil-Moltó
We model competition in an emissions trading system (ETS) as a game between two firms and environmental group. In a previous stage, firms endogenously choose their manufacturing technologies. Our results show that there is a U-shape relationship between how polluting the chosen technology is and the degree of the environmentalists’ impure altruism. Firms choose a more polluting technology in the presence of the environmentalists than in their absence if they are characterised by high enough degrees of impure altruism.

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Publisher

Dept. of Economics, University of Leicester

Available date

2010-03-02

Publisher version

http://www.le.ac.uk/economics/research/discussion/papers2009.html

Book series

Papers in Economics;09/9

Language

en

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