Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/43447
Authors: 
Nimubona, Alain-Désiré
Sinclair-Desgagné, Bernard
Year of Publication: 
2010
Series/Report no.: 
Nota di lavoro // Fondazione Eni Enrico Mattei: Sustainable development 2010,146
Abstract: 
To comply with laws, regulations and social demands, polluting firms increasingly purchase the needed means from specialized suppliers. This paper analyzes this relatively recent phenomenon. We show how environmental regulation, the size of the output market, the elasticity of demand for abatement goods and services, and the fact that in-house and outsourced abatement expenses are substitutes or complements can influence a polluter's make-or-buy decision. Specific features of abatement outsourcing are highlighted, qualifications and refinements of the theory of vertical integration are then proposed, and some consequences for environmental policy are briefly discussed.
Subjects: 
Eco-industry
Make-or-buy Decision
Outsourcing
Vertical Integration
JEL: 
L23
L24
Q52
Document Type: 
Working Paper

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