Disequilibrium and indivisibility of pollution control equipment under a permit-trading system: A case study of Kao-Hsiung and Ping-Tung counties in Taiwan

Chao Ning Liao, Hayri Önal

Research output: Contribution to journalArticlepeer-review

Abstract

A mixed-integer programming model that minimizes the social abatement cost is used to investigate whether a market equilibrium condition could be reached in a newly proposed permit-trading market for nitrogen oxide control in Taiwan. Unlike in previous studies, unit pollution abatement cost is determined endogenously by incorporating technology adoption as a binary decision variable. The results show that when technologies are lumpy and irreversible, disequilibrium might occur due to firms' inability to manage their emission levels after installing equipment with fixed size and control capacity.

Original languageEnglish (US)
Pages (from-to)169-177
Number of pages9
JournalEnvironmental Modeling and Assessment
Volume14
Issue number2
DOIs
StatePublished - Apr 2009

Keywords

  • Disequilibrium
  • Mixed-integer programming
  • Nitrogen oxide
  • Tradable permits

ASJC Scopus subject areas

  • Environmental Science(all)

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