This paper analyzes the eects of the New Source Review (NSR) environmental regula-tions on coal-red electric power plants. Regulations that grew out of the Clean Air Actof 1970 required new electric generating plants to install costly pollution control equipmentbut exempted existing plants....

This study investigates the dynamic efficiency of an emissionregulation regime where companies competitively pay for emissionlicences. We embed the emission licence market in a Cournotmodel where the price of emission licences is subject to strategictradeoff between licences and abatement...

This paper compares emissions trading based on a cap on total emissions (permit trading)and on relative standards per unit of output (credit trading). Two types of market structureare considered: perfect competition and Cournot oligopoly. The effect of combining the twoschemes is also...

In this paper we study the short term price behavior of December 2008 future prices for EU emissionallowances. We model returns and volatility dynamics of this price showing that a standard ARMA-GARCHframework is not adequate and that the gaussianity assumption is rejected due to the occurrence...

This paper investigates the effect of business regulations on various measures of entrepreneurship. Using data for a sample of countries participation in the Global Entrepreneurship Monitor between 2002 and 2005, we estimate a two-equation model explaining the nascent and the actual...

We show in a simple model of entry with sunk cost, that a regulator prefers limiting the output, orcapacity, of the incumbent firm rather than imposing a “Minimum Quality Standard” in order tohelp the entrant to provide high quality. As a by-product, our analysis makes a contribution to...

The imposition of universal coverage and uniform pricing constraints, as part of the universalservice obligations, makes the universal service provider less aggressive in the price game when itcompetes with a firm that does not cover the whole set of markets (Valletti et al., 2002). In...

We analyse a (differentiated good) industry where an incumbent firm owns a networkgood (essential input) and faces potential competition in the (downstream) retailmarket. Unlike the traditional approach, we consider a scenario where the decision tocompete or not in the downstream segment is...

In der Literatur zur Abschlußprüfung ist ein negativer Effekt eines ökonomischen Vorteils aus der wiederholten Mandatsannahme, der aufgrund von Transaktionskosten entsteht, auf die Unabhängigkeit des Abschlußprüfers diskutiert worden. Anders als die bisher vorgestellten Ansätze wird im...

This note analyses investment and risk-taking in a simple agency model of public regulation/procurement borrowed from Laffont & Tirole (1993). We show that the principal will overinvest or underinvest depending on whether investment is marginally more productive in bad or in good states. Due to...