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

    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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