Abstract This paper investigates the impact of carbon trading by transport companies on the structure of the road freight industry. Based on a cost-benefit model of a transport company, best response strategies of road freight companies and the resulting equilibrium carbon credit price are derived. It turns out that by changing the penalty level and the rate of free carbon credits, the government can control the payoff of the road freight companies indirectly through the carbon trading system.
The Impact of Carbon Trading on the Road Freight Sector
LISS 2013 ; 615-620
2013-12-04
6 pages
Article/Chapter (Book)
Electronic Resource
English
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