Browsing by Author "Kyriakopoulou, Efthymia"

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Atmospheric Pollution in Rapidly Growing Urban Centers: Spatial Policies and Land Use Patterns
(2014-08) Kyriakopoulou, Efthymia; Xepapadeas, Anastasios; Dept. of Economics, University of Gothenburg
We study the optimal and equilibrium distribution of industrial and residential land in a given region. The trade-o¤ between the agglomeration and dispersion forces, in the form of pollution from stationary forces, production externalities, and commuting costs, determines the emergence of industrial and residential clusters across space. In this context, we de ne two kinds of spatial policies that can be used in order to close the gap between optimal and market allocations. More speci cally, we show that the joint implementation of a site-speci c environmental tax and a site-speci c labor subsidy can reproduce the optimum as an equilibrium outcome. The methodological approach followed in this paper allows for endogenous determination of land use patterns and is shown to provide more precise results compared to previous studies.
Environmental Policy and the Size Distribution of Firms
(2015-02) Coria, Jessica; Kyriakopoulou, Efthymia; Dept. of Economics, University of Gothenburg
In this paper we analyze the effects of environmental policies on the size distribution of firms. We model a stationary industry where the observed size distribution is a solution to the profit maximization problem of heterogeneous firms that differ in terms of their energy efficiency. We compare the equilibrium size distribution under emission taxes, uniform emission standards, and performance standards. Our results indicate that, unlike emission taxes and performance standards, emission standards introduce regulatory asymmetries favoring small firms. These asymmetries cause significant detrimental effects on total output and total welfare, yet lead to reduced emissions and help preserve small businesses.
On The Strategic Effect of International Permits Trading on Local Pollution: The Case of Multiple Pollutants
(2015-02) Antoniou, Fabio; Kyriakopoulou, Efthymia; Dept. of Economics, University of Gothenburg
We introduce a model of strategic environmental policy where two firms compete à la Cournot in a third market under the presence of multiple pollutants. Two types of pollutants are introduced, a local and a transboundary one. The regulator can only control local pollution as transboundary pollution is regulated internationally. The strategic effect present in the original literature is also replicated in this setup. However, we illustrate that when transboundary pollution is regulated through the use of tradable emission permits instead of non-tradable ones then a new strategic effect appears which had not been identified thus far. In this case, local pollution increases further and welfare is lowered. We also provide evidence from the implementation of EU ETS over the pollution of PM10 and PM2.5.
Spatial Policies and Land Use Patterns: Optimal and market allocations
(2013-05) Kyriakopoulou, Efthymia; Xepapadeas, Anastasios; Dept of Economics, University of Gothenburg
Environmental conditions and pollution levels have been proven to affect firms and households location decisions in various ways. In this paper, we study the opti- mal and equilibrium distribution of industrial and residential land in a given region. Industries produce a single good using land and labor and generate emissions of a pollutant, and households consume goods and residential land and dislike pollution. The trade-off between the agglomeration and dispersion forces, in the form of industrial pollution, environmental policy, production externalities, and commuting costs, determines the emergence of industrial and residential clusters across space. We also show that the joint implementation of a site-specific environmental tax and a site-specific labor subsidy can reproduce the optimum as an equilibrium outcome.