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

doi:10.1007/s10666-007-9122-6

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 journal › Article › peer-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 language	English (US)
Pages (from-to)	169-177
Number of pages	9
Journal	Environmental Modeling and Assessment
Volume	14
Issue number	2
DOIs	https://doi.org/10.1007/s10666-007-9122-6
State	Published - Apr 2009
Externally published	Yes

Keywords

Disequilibrium
Mixed-integer programming
Nitrogen oxide
Tradable permits

ASJC Scopus subject areas

Environmental Science(all)

Online availability

10.1007/s10666-007-9122-6

Library availability

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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.",

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note = "Funding Information: Acknowledgements This work was partially supported by National Science Council (NSC 92-2415-H-006-002) in Taiwan. The authors wish to thank two unknown referees for comments and suggestions.",

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AB - 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.

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

Abstract

Keywords

ASJC Scopus subject areas

Online availability

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