Joint production, externalities, and the regulation of production networks

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Authors

Real production systems are often vertically integrated in thesense that one production process uses the unwanted joint product of another production process as input.This interrelationship links in a non-obvious way the different negative externalities stemming from theproduction processes. An empirical example is the sulphuric acid industry. Our model of a vertically integratedproduction system shows how internalising one currently existing externality may create another externalitywhich has thus far not been existent. We also discuss how environmental policy could deal with this problemwhen regulating integrated production systems.
OriginalspracheEnglisch
ZeitschriftEnvironmental and Resource Economics
Jahrgang16
Ausgabenummer2
Seiten (von - bis)229-251
Anzahl der Seiten23
ISSN0924-6460
DOIs
PublikationsstatusErschienen - 06.2000

DOI