Title

Comparative statics of a monopolistic firm facing price-cap and command-and-control environmental regulations

Authors

Authors

M. R. Caputo

Comments

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Abbreviated Journal Title

Energy Econ.

Keywords

Price-cap regulation; Command-and-control environmental regulations; Comparative statics; Testable implications; STANDARDS; Economics

Abstract

An exhaustive comparative statics analysis of a model of a monopolistic firm facing price-cap regulation and a variety of commonly implemented command-and-control environmental regulations is carried out. The comparative statics are intrinsic to each of the models and thus form their basic, empirically testable properties. Several unanticipated results emerge from the analysis. In particular, it is shown that a subset of the intrinsic comparative statics are qualitatively invariant to all of the commonly employed command-and-control environmental regulations that a price-cap regulated profit-maximizing monopoly might face, while others are specific to the type of command-and-control environmental regulation in place. (c) 2014 Elsevier B.V. All rights reserved.

Journal Title

Energy Economics

Volume

46

Publication Date

1-1-2014

Document Type

Article

Language

English

First Page

464

Last Page

471

WOS Identifier

WOS:000347579800040

ISSN

0140-9883

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