The energy-intensive pulp and paper industry is a major contributor to carbon dioxide emissions. The potential to reduce energy consumption and carbon dioxide emissions is generally assessed using energy conservation supply curves and marginal abatement cost curves; however, both of these...

In this paper, the effect of environmental policy on the composition of capital is investigated. By allowing for non-linearities, it generalizes Xepapadeas and De Zeeuw (Journal of Environmental Economics and Management, 1999) and determines scenarios in which their results do not carry over. In...