Environmental Regulation Cost and Industry Structure Changes

摘要: Nonstationary Markov analyses are used to investigate impacts of environmental regulatory costs associated with compliance on changes in market structure pulp and paper industries. Results show regulation expenditures have statistically significant effects the probabilities capacity moving a larger company-size category, so industry is affected by regulation. However, counter expectations, results further consolidation occurs higher probability when falling rather than they rising. Policy that presume immediate policy responses cost or unchanged may yield time-inconsistent conclusions.