Marketable pollution permits in oligopolistic markets with transaction costs
成果类型：
Article
署名作者：
Nagurney, A; Dhanda, KK
署名单位：
University of Massachusetts System; University of Massachusetts Amherst; University of Portland
刊物名称：
OPERATIONS RESEARCH
ISSN/ISSBN：
0030-364X
DOI：
10.1287/opre.48.3.424.12429
发表日期：
2000
页码：
424-435
关键词：
摘要：
In this paper, we present a variational inequality framework for the modeling, qualitative analysis, and computation of equilibrium patterns in multiproduct, multipollutant oligopolistic markets with marketable pollution permits in the presence of transaction costs. The model deals explicitly with spatial differentiation and also guarantees that the imposed environmental quality standards are met through the initial allocation of licenses. An algorithm is proposed, with convergence results, to compute the profit-maximized quantities of the oligopolistic firms' products and the quantities of emissions, along with the equilibrium allocation of licenses and their prices. Numerical examples are included to illustrate this approach.