Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Environmental Taxation Location: D-106 Session Chair: Corinne Langinier, University of Alberta | |
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Abatement Capacity and Usage Decisions 1: University of South Carolina Upstate, United States of America; 2: Washington State University, United States of America We examine investment in abatement allowing for non-negligible usage costs, identifying how environmental regulation and investment decisions are affected by these costs. Under monopoly, we find two equilibrium outcomes. First, full usage equilibrium arises when an expensive investment in abatement is accompanied by a low usage cost, which is in line with the previous literature. Second, partial usage equilibrium is supported if investment and usage costs are substantial, calling for more stringent emission fees. Under oligopoly, we observe similar results, but the full usage equilibrium is more likely to arise, especially when environmental damages are severe. Our results imply that generous investment subsidies, while triggering more abatement, can unintentionally become ineffective if they ignore capacity usage decisions. | |