To study the impact of market demand on the optimal emissions level, consider a parameterization of the
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To study the impact of market demand on the optimal emissions level, consider a parameterization of the inverse demand curve such that p=P(X,α), where α is a parameter such that Pα(•)>0 and as usual PX(•)<0. Assume there are J identical firms. Show that the market levels of both total output and total emissions increase when α increases.
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Related Book For
A Course In Environmental Economics
ISBN: 9781316866818
1st Edition
Authors: Daniel J Phaneuf, Till Requate
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