A computable market equilibrium model with markets for transferable discharge permits

James S. Shortle, Keith Willett

Research output: Contribution to journalArticle

Abstract

This paper presents a mathematical programming model for numerically analyzing the impacts of a transferable discharge permit (TDP) system on resource allocation and the distribution of income in a competitive equilibrium setting. Key assumptions of the model are linear household commodity demands, Leontief production functions requiring both primary and produced factors, fixed primary factor supplies and linear pollution dispersion processes. A basic model is presented with discussion of how it may be modified to examine alternative TDP configurations. In addition, there is also a discussion of relationships between key primal and dual variables and of issues involved in actual numerical implementation of the model.

Original languageEnglish (US)
Pages (from-to)263-270
Number of pages8
JournalManagerial and Decision Economics
Volume8
Issue number4
DOIs
StatePublished - Dec 1987

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management
  • Management Science and Operations Research
  • Management of Technology and Innovation

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