RT Journal Article
T1 Technology Adoption in Emission Trading Programs with Market Power
A1 Arguedas, Carmen
A1 André García, Francisco Javier
AB In this paper we study the relationship between market power in emission permit markets and endogenous technology adoption. We find that the initial distribution of permits, in particular, the amount of permits initially given to the dominant firm, is crucial in determining over- or under-investment in relation to the benchmark model without market power. Specifically, if the dominant firm is initially endowed with more permits than the corresponding cost effective allocation, this results in under-investment by the dominant firm and over-investment by the competitive fringe, regardless of the specific amount of permits given to the latter firms. The results are reversed if the dominant firm is initially endowed with relatively few permits. Also, the presence of market power results in a divergence of both abatement and technology adoption levels with respect to the benchmark scenario of perfect competition, as long as technology adoption becomes more effective in reducing abatement costs.
PB IAEE
SN 0195-6574
YR 2018
FD 2018
LK https://hdl.handle.net/20.500.14352/92700
UL https://hdl.handle.net/20.500.14352/92700
LA eng
NO André, Francisco J., y Carmen Arguedas. «Technology Adoption in Emission Trading Programs with Market Power». The Energy Journal 39, n.o 1_suppl (junio de 2018): 145-74. https://doi.org/10.5547/01956574.39.SI1.fand.
DS Docta Complutense
RD 14 dic 2025