Tradable emission rights and strategic interaction |
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| Authors: | Nils-Henrik Mørch von der Fehr |
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| Institution: | (1) Department of Economics, University of Oslo, P.O. Box 1095 Blindern, N-0317 Oslo, Norway |
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| Abstract: | The use of tradable emission rights as environmental policy instruments may affect the conditions for strategic interaction between regulated firms and thus have implications for competition policy. This paper presents an analysis of how, and under what conditions, emission rights can be used strategically by oligopolistic firms for predatory and exclusionary purposes. |
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| Keywords: | Tradable emission rights imperfect competition oligopoly strategic interaction predation |
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