An Impact Analysis Of A Quadratic Programming Model: A Case Of The Appalachian Coal Market With The Pollution Tax

In this paper, we discuss the possible impacts on market structure of imposing the pollution tax on coal producers in the Appalachian market. The consequence of such environmental restraints would (i) alter the trade and supply patterns, (ii) reduce consumptions of coal, and (iii) cause the Appalachian coal market to undergo a structural change. Simulations are then made to demonstrate that the model is rather sensitive to the pollution tax especially in terms of market boundaries.