This paper assesses the impact of emission trading on short-term input demand as well as on long-term production decisions, tacking into account uncertainty in the polluting input price and abatement by input substitution. We find that firms decisions depend on the interplay between three...

This paper examines the link between pollution and income. The main purpose is to assess whether the introduction of income inequality in a Environmental Kuznets Curve (EKC) analysis can give new insights into the relationship between pollution and economic growth. The EKC hypothesis proposes...

This paper is providing an initial empirical application of Lee and Pitt's approach to the problem of corner solutions with panel data. This approach deals with corner solutions in a manner consistent with behavioral theory. Furthermore it allows the use of flexible form cost functions and...

[eng] Several econometric studies have shown that, at least for some pollutants, the relationship between emissions and income per capita follows an inverted U curve, known as "environmental Kuznets cuve". This paper present a simple microeco-nomic model in which income explain the shape of the...

Several econometric studies have shown that, at least for some pollutants, the relationship between emissions and income per capita follows an inverted U curve, known as ?environmental Kuznets cuve??. This paper present a simple microeconomic model in which income explain the shape of the...

This paper examines the link between pollution and income. It shows how income inequality affects environmental policies and therefore pollution. The Environmental Kuznets Curve (EKC) hypothesis proposes that there is an inverted U-shape relation between environmental degradation and income per...