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Pollution and Environmentalists' Participation in Emissions Trading Systems

Author

Listed:
  • Asproudis, Elias
  • Gil-Moltó, Maria José

Abstract

In this paper, we show that the participation by an environmental group in a permit market does not necessarily result in more investment in abatement or even less pollution. There is a U-shaped relationship between the emission per unit of output and the extra weight given by the environmental group to the reduction of emissions. For high values of this weight, firms invest less in abatement but also produce less. For lower values, firms invest more in abatement but also produce more, which may result in higher emissions levels.

Suggested Citation

  • Asproudis, Elias & Gil-Moltó, Maria José, 2014. "Pollution and Environmentalists' Participation in Emissions Trading Systems," Strategic Behavior and the Environment, now publishers, vol. 4(1), pages 59-87, April.
    • Handle: RePEc:now:jnlsbe:102.00000044
    DOI: 10.1561/102.00000044
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    Citations

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    Cited by:

    1. Elias Asproudis & Thomas Weyman-Jones, 2020. "How the ENGOs Can Fight the Industrial/Business Lobby with Their Tools from Their Own Field? ENGOs Participation in Emissions Trading Market," Sustainability, MDPI, vol. 12(20), pages 1-13, October.
    2. Eleni Stathopoulou, 2014. "Environmental campaigns and endogenous technology choice under international oligopoly," Discussion Papers in Economics 14/10, Division of Economics, School of Business, University of Leicester.
    3. Elias Asproudis & Eleftherios Filippiadis, 2021. "Environmental Technological Choice in a Cournot-Bertrand Model," Journal of Industry, Competition and Trade, Springer, vol. 21(1), pages 43-58, March.

    More about this item

    Keywords

    Emissions trading systems; abatement; induced technological change; environmental group;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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