We propose a simple model of a partially integrated industry which explicitly takes into account persistent production cost differences across upstream firms, such as one might observe in natural resource industries. The model allows us to highlight the respective roles of strategic...

The Porter hypothesis asserts polluting firms can benefit from environmental policies, arguing that well-designed environmental regulations stimulate innovation, which by increasing either productivity or product value, leads to private benefits. As a consequence, environmental regulations would...

Investment expenditures in natural gas distribution pipelines account for 70% of the rate base of Société en Commandite Gaz Métropolitain (SCGM), the natural gas utility which serves most customers in the province of Québec. In allocating these costs to rate payers, the regulatory process...

This paper analyzes some of the problems that arise in decentralizing education to the private sector. We concentrate on the difficulties that result from heterogeneity among students and competition among schools in a locational setting. We analyze two main issues, the resources expended by...

In order to reach the state of economic sustainability, the problem of technology transition emphasizes the possibility of substituting for the exhaustible resource with an everlasting source of energy input. This paper aims at providing an analysis of this problem in an overlapping-generation...