Time: 3:00pm to 4:30pm
Venue: Room,14-221, 14/F, Lau Ming Wai Academic Buildin
Opponents of pollution regulation claim that regulations choke businesses, hurt welfare and destroy economic growth. Do pollution regulations in fact hurt producers and the economy? To address this question, we develop an integrated production-pollution-abatement model, and study two popular regulations-- Cap-and-Trade and Taxes-- under imperfect competition. We show that firms' strategic tradeoffs between output reduction and pollution abatement, not identified in the prior literature, drive industry profits, consumer surplus and welfare. Moreover, the market structure mediates these tradeoffs, and is thus an important, if overlooked, driver of the economic consequences of pollution regulation. We prove that under imperfect competition, well-chosen regulation improves firms' profits compared to laissez-faire, and can often, simultaneously, improve consumer surplus and welfare. Our results suggest that the paramount factor in framing pollution regulations should be their impact on consumers rather than on producers. (Joint work with François Giraud-Carrier)
Krishnan S Anand is David Eccles Faculty Fellow and Associate Professor of Operations and Information Systems at the David Eccles School of Business at the University of Utah. Prior to joining the Eccles faculty, he was a faculty member at the Wharton School, University of Pennsylvania, and the Kellogg Graduate School on Management, Northwestern University. Dr. Anand received a B.Tech in Computer Science from the prestigious Indian Institute of Technology (IIT) (Madras), an M.S. in Management Science from the Simon School of Business Administration, University of Rochester and Ph.D. from the Stanford Graduate School of Business, Stanford University, with a concentration in Operations and Information Management. Dr. Anand served as the Doctoral Program Coordinator for the Operations and Information Systems Department at the David Eccles School of Business, and has taught extensively in the PhD program in Operations. He won the Outstanding Honors Faculty award for 2010-2011 and the Daniels Fund Leadership in Ethics Education Award in 2016. He designed, and teaches, an elective on Global Supply Chain Management. Dr. Anand’s research spans the areas of Operations / Supply Chain Management as well as the economics of Information Systems, and the interface of these two disciplines. His current research interests include Ethics in Business, Sustainable Operations, Supply Chain Contracts, and the interplay of Inventories, Information and Incentives in Supply Chains. Dr. Anand has published several well-cited articles in top research journals on these topics. He has presented his work widely-- at all the major business schools in the country as well as at a number of conferences, to both practitioners and researchers. His paper “Quality-Speed Conundrum: Tradeoffs in Customer-Intensive Services”, coauthored with M. Pac and S. Veeraraghavan, won the prestigious Management Science best paper in Operations award, among all papers published in Management Science in the three-year period 2010-2012. His paper “Ethics,