Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
We investigate the long-run effect of energy conservation regulation, which forces firms to raise energy-saving investment above the cost-minimizing level. If Pigovian tax is imposed, additional regulation always harms social welfare under perfect competition, while it can improve welfare under imperfect competition. Our result under imperfect competition holds regardless of whether strategies are strategic substitutes or complements in contrast to direct entry regulation.