The purpose of this paper is to develop models with and without potential emissions trading and to compare industry profits under the two regimes. The model in which emissions trading is permitted is a nonparametric industry frontier model in the spirit of Färe et al. (1992). It is relative to...

In this paper we analyze the impact on firm profits of the environmental regulations in the Swedish pulp and paper industry. The approach taken is a non-parametric programming model of the technology. A feature of this industry is that environmental regulations are determined individually for...

This paper provides a theoretical and empirical analysis of how environmental charges affect a particular sector of the economy. Our approach allows a simple comparison of how partial and “general” equilibrium results may differ. Copyright Kluwer Academic Publishers 1993