Emissions taxes, tradeable emission permits and voluntary compliance policies are becoming the instruments of choice in controlling environmental problems at the national and international level. Careful design of these policies in second-best environments is a very important factor for their success. This book uses cutting-edge research in order to appraise their efficiency in varying market conditions.
This book evaluates the impact that market power could have on the implementation of market-based environmental policies within static, dynamic and open economy frameworks. It explores the potential negative impacts that market-based instruments could have on competitiveness and examines the effects that time inconsistency in the implementation of emission taxes and emission permits could have on environmental innovation. Utilizing open economy frameworks, the contributors also analyse the impact of market imperfections on the structure of environmental polices across countries. They advocate co-operation across countries as a means to maximise the benefits from these policies.
Environmental Regulation and Market Power will prove invaluable to scholars and policymakers in the area of environmental studies.
Edited by Emmanuel Petrakis, Associate Professor of Economics, Universiy of Crete, Greece, Eftichios S. Sartzetakis, Department of Accounting and Finance, University of Macedonia, Greece and Anastasios Xepapadeas, Professor of Economics, Athens University of Economics and Business, Greece
Contents: Introduction 1. Emission Taxes for Price Setting Firms: Differentiated Commodities and Monopolistic Competition 2. Minimum Quality Standard as an Environmental Policy: Domestic and International Effects 3. Emissions Permits Trading and Market Structure 4. Experimental Tests of Market Power in Emission Trading Markets 5. The Competitive Implications of Facility-Specific Environmental Agreements: The Intel Corporation and Project XL 6. Environmental Policy and Time Consistency: Emission Taxes and Emissions Trading 7. Does Government Precommitment Promote Environmental Innovation? 8. Diffusion of Abatement Technologies in a Differentiated Industry 9. Pollution, Pigouvian Taxes and Asymmetric International Oligopoly 10. R&D Cooperation, Innovation Spillovers and Firm Location in a Model of Environmental Policy 11. Relative Standards as Strategic Instruments in Open Economies 12. Ecological Dumping: Harmonization and Minimum Standards Index