Non-saturated markets such as high-tech markets are attracting more and more eco-conscious consumers. Their utility can be increased by firms’ investment in carbon reduction, so the overall demand can be expanded without intensifying the market competition too much. In this paper, we build a...

In this paper, we examine the use of carbon pricing and an output-based subsidy in a market with imperfect competition. We consider a carbon pricing policy in Alberta's electricity market as a case study. This policy consists of two phases. In the first phase, the carbon price is doubled with...