Timing of Command-and-Control policy, asymmetric technology, and green trade unions

This document delves into the Command-and-Control framework, specifically examining the timing of environmental policymaking within the context of regulating oligopolistic firms to reduce emissions. The regulator faces a crucial decision of implementing technological standards before (ex-ante timing) or after (ex-post timing) firms make production decisions. Geographical considerations also play a role, with regions adopting asymmetric anti-pollution technology standards. An innovative aspect is the inclusion of green trade unions, advocating for environmental conservation during negotiations with firms. The document conducts a comparative analysis of two games employing ex-ante and ex-post approaches, evaluating outcomes across various dimensions. The study emphasizes the significant impact of regulatory timing on environmental and economic outcomes, showcasing the advantages of a proactive (ex-ante) approach in fostering less-polluting technologies, higher production levels, increased profits, elevated social welfare, and reduced environmental damage. These insights contribute to the discourse on environmental policymaking, providing valuable considerations for policymakers, industry stakeholders, and researchers.