We investigate the privatization policy of an industry where the production process generates emissions. We show that the high degree of negative externality leads to production substitution from the public firm to private firms. Moreover, we show that, if the degree of negative externality is...

We investigate the privatization policy of an industry where the production process generates emissions. We show that the high degree of negative externality leads to production substitution from the public firm to private firms. Moreover, we show that, if the degree of negative externality is...

The paper considers a cost-reducing investment by the public sector. We compare the investment in the public monopoly to that in the mixed oligopoly. Without specifications of the demand and cost functions, we show that the investment in the public monopoly is higher thanthat in the mixed...

The purpose of this paper is to examine the public sector's cost-reducing investment when there exists the effect of R&D spillover. We show that the investment in the mixed oligopoly is not higher than that in the public monopoly. When the cost-reducing effect of investment for each firm is the...

The paper considers a cost-reducing investment by the public sector. We compare the investment in the public monopoly to that in the mixed oligopoly. Without specifications of the demand and cost functions, we show that the investment in the public monopoly is higher thanthat in the mixed...

The purpose of this paper is to examine the public sector's cost-reducing investment when there exists the effect of R&D spillover. We show that the investment in the mixed oligopoly is not higher than that in the public monopoly. When the cost-reducing effect of investment for each firm is the...

This note provides an axiomatic analysis of a social welfare ordering over infinite utility streams. We offer two characterizations of an infinite-horizon version of the Nash criterion.

Kutlu (2009, “Price discrimination in Stackelberg competitionâ€, Journal of Industrial Economics) shows that the Stackelberg leader sells to the highest value consumers and only the Stackelberg follower practises price discrimination. We show that this result is not robust if the...

This paper analyzes jointly the time series of European Union Allowances (EUAs) and Certified Emissions Reductions (CERs) in a Markov regime-switching environment. The purpose consists in capturing the interactions between the two time series - which have been highlighted in previous literature...

This paper develops two nonlinear cointegration models - a VECM with structural shift and a threshold cointegration model - applied to carbon spot and futures prices. The results extend the previous findings by Chevallier (2010), who studied this topic with a linear VECM. First, in the VECM with...