This paper examines the operation of an emissions trading scheme (ETS) in a Cournot oligopoly.  We study the impact of the ETS on industry output, price, costs, emissions, and profits.  In particular, we develop formulae for the number of emissions permits that have to be freely allocated to...

Gas prices around the world vary widely despite being connected by international trade of liquefied natural gas (LNG). Some industry observers argue that major exporters have acted irrationally by not arbitraging prices. This is also difficult to reconcile with a competitive model in which...

We evaluate a recent US initiative to include the social cost of carbon (SCC) in regulatory decisions. To our knowledge, this paper provides the first systematic analysis of the extent to which applying the SCC has affected national policy. We examine all economically significant federal...

This paper presents a game-theoretic analysis of multimarket competition with capacity investments, applied to international gas markets. It identifies a strategic advantage of «focused» pipeline gas producers (e.g., Gazprom) over «diversified» multimarket exporters of liquefied natural gas...

Edgeworth's taxation paradox states that a unit tax can decrease the market price of a good. This paper presents a new version of the paradox in which a tax reduces price--and increases industry output--because it attracts additional entry into the market. It is particularly striking that the...

Market share objectives are prominent in many industries, especially where managers pay much attention to league table rankings. This paper explores the strategic rationale for giving managers incentives based on market share, motivated by evidence from executive compensation practice in the...

we evaluate a recent u.s. initiative to include the social cost of carbon (sCc) in regulatory decisions. To our knowledge, this paper provides the first systematic test of the extent to which applying the SCC has affected national policy. we examine all economically significant federal...