Fershtman,C.de Zeeuw,A.J.2025-01-312025-01-311996Fershtman, C & de Zeeuw, A J 1996 'Tradeable Emission Permits in Oligopoly' CentER Discussion Paper, vol. 1996-30, Microeconomics, Tilburg.arno: 117789metis: 234171https://hdl.handle.net/20.500.14602/26332Pagination: 30The paper considers an oligopolistic industry in which pollution is a by-product of production. Firms are assumed to have emission permits that restrict the amount that they pollute. These permits are assumed to be tradeable and the paper discusses a structure in which the same set of firms operates both in the product market as well as in the pollution permits market. The paper demonstrates that in such a structure allowing trade in emission permits is not necessarily beneficial. In particular it may lead to the choice of inferior production and abatement technologies, it may lead to a market equilibrium with lower output rates and higher prices and it may result in a shift of production from a low cost to a high cost firm.enginfo:eu-repo/semantics/restrictedAccesspollution controloligopolytradeemission permitDiscussion paperGeneral rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. - Users may download and print one copy of any publication from the public portal for the purpose of private study or research. - You may not further distribute the material or use it for any profit-making activity or commercial gain - You may freely distribute the URL identifying the publication in the public portal" Take down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim.52434730https://research.tilburguniversity.edu/en/publications/22773d9c-cb37-4646-bed9-f3f3e5061ffc(c) Universiteit van TilburgFershtman, C.de Zeeuw, A.J.