Technical efficiency and C02 abatement policies in the Dutch glasshouse industry
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This paper develops a short-run microeconomic simulation model of the Dutch glasshouse industry in order to investigate
the relation between technical efficiency and marginal abatement costs of C02 emission. The model is also used to determine
the effects of an emission tax and systems of tradable and non-tradable quota for groups of firms with different rates of
technical efficiency. The results show that marginal abatement costs are very responsive to changes in technical efficiency.
Furthermore, it is found that firms with a low technical efficiency are faced with a higher profit reduction under different
abatement policies than firms with a high technical efficiency.
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