| Author: | Tahvonen, O. |
| Title: | Trade with polluting nonrenewable resources |
| Journal: | Journal of Environmental Economics and Management
1996 : JAN, VOL. 30:1, p. 1-17 |
| Index terms: | TRADE POLLUTION NATURAL RESOURCES |
| Language: | eng |
| Abstract: | The paper considers nonrenewable resource extraction in a situation where the resource buyers have formed a government which applies emission taxation for slowing pollution accumulation and the sellers are competitive or a resource cartel. The noncompetitive situation is studied as a Stackelberg differential game which the cartel leads. It is first assumed that extraction costs do not depend on the resource stock level and that the pollution stock does not decay. In the time-consistent and Markov-perfect equilibrium the sellers' monopoly power vanishes asymptotically. |
SCIMA