Author:
Dolar Burak,Shughart William F
Publisher
Springer Science and Business Media LLC
Subject
Economics and Econometrics,Finance
Reference78 articles.
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5. According to Maloney and McCormick,4 winners and losers are often created within an industry as a result of environmental quality regulations. Maloney and McCormick4 (p. 105) argue that any such regulation, which increases everyone's costs, is likely to generate an intra-industry redistribution of wealth because, ‘if the most efficient firms in the industry can comply most cheaply with the law, then the industry supply curve will shift upward and become more inelastic; market price will increase more than costs for some firms. The rents of marginal firms will decline and some will exit as they face higher costs’.
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