Unilateral carbon policies are inefficient due to the fact that they generally mean that abatement takes place in high-cost countries and because they are subject to carbon leakage. In this paper, we ask whether the use of carbon tariffs — tariffs on the carbon embodied in imported goods — might lower the cost of achieving a given reduction in world emissions. Specifically, we explore the role ...

This paper analyses two-way access pricing in a telecommunications market where consumers are heterogeneous in their demand for calls and firms are allowed to use nonlinear tariffs. We first investigate how the presence of access charges affects the tariffs offered by firms in symmetric equilibrium. Next we show that under certain conditions each firm’s profit is independent of the level of (re...

We examine regulation of distribution tariffs in the Mexican natural gas industry. Average revenue in each period is constrained not to exceed an upper bound and is calculated as the ratio of total revenue to output in the current period. This regime implies incentives for setting two-part tariffs strategically. The usage charge is typically dropped to its lowest feasible level while the fixed ...

I analyze the welfare implications of protecting intellectual property rights (IPRs) in developing countries through its impact on innovation, market structure, and technology transfer. FDI, tariffs, and cooperation are introduced to the strategic IPR literature. In a North-South framework, the Southern government sets the IPR policy strategically by anticipating the Northern firm’s decision on...

This study employs a new methodological approach that measures production efficiency in changing trade patterns. It shows that the most rapidly growing products in Mercosur’s intratrade generally are goods in which members do not have a comparative advantage and have not been able to export competitively to outside markets. This is consistent with substantial trade diversion within the arrangem...

This paper considers how power-based distribution tariffs encourage electricity end-users to invest in energy storages to reduce their peak loads. The study uses actual automatic meter reading (AMR) data from 30 000 customers the annual electricity consumption of which is less than 50 MWh. The customers locate in the area of a Finnish distribution system operator (DSO) operating in an urban env...

In this paper we compare and contrast the political viability of bilateral Free Trade Area (FTA) Agreements in the presence of tariffs and quotas. Assuming that the government maximizes a weighted sum of welfare and producer profits, we show that the political viability of FTAs varies according to whether trade restrictions take the form of tariffs or quotas. A key result is that whereas an FTA...

In the Stackelberg network pricing problem, one has to assign tariffs to a certain subset of the arcs of a given transportation network. The aim is to maximize the amount paid by the user of the network, knowing that the user will take a shortest st-path once the tariffs are fixed. Roch, Savard, and Marcotte (Networks, Vol. 46(1), 57–67, 2005) proved that this problem is NP-hard, and gave an O(...

One upstream and two downstream firms are involved in a vertically related industry. Under observable contracts, aware of both their own rival's input prices. However, under an unobservable contract, only know price unaware rival’s price. We demonstrate vertical separation integration the contracts. focus on methods: linear tariffs two-part tariffs. With asymmetric costs contracts increases con...