Changes in the firms behavior after the opening of markets of allowances

Antoine Mandel (1)

1 CES - Centre d'économie de la Sorbonne

This paper focuses on the influence on the general equilibrium of an economy of the opening of markets of allowances, such as the European Union Emission Trading Scheme. Assuming there existed an equilibrium before the opening of allowances' markets, we describe the changes in the firms behavior which guarantee that an equilibrium can be reached in the enlarged economy. Hence we describe under which conditions the economy can undergo the opening of markets of allowances.

Domaines: Economies et finances

Antoine Mandel. Changes in the firms behavior after the opening of markets of allowances. Economic Theory, 2009, 40 (1), pp.1-25. ⟨10.1007/s00199-008-0360-x⟩. ⟨hal-00633355⟩