Hepburn, C.J.; Quah, J.K.-H.; Ritz, R.A. - Faculty of Economics, University of Cambridge - 2012
This paper examines the impact of an emissions trading scheme (ETS) on equilibrium emissions, output, price, market concentration, and profits in a generalized Cournot model. We develop formulae for the number of emissions permits that have to be freely allocated to firms to neutralize the...