This paper develops a dynamic theoretical model for a polluting industry to determine the emission dynamics, internalizing damage cost function along with production cost function, considering emission factor. It turns out that the competitive output price is composed of not only marginal...

This study estimates the gasoline demand function for the Islamic Republic of Iran, using the structural time series model over the period 1968-2002, and uses it to estimate the change in social welfare for 2003 and 2004, of a higher gasoline price policy. It is found that short- and long-run...