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Emissions Taxation in Durable Goods Oligopoly

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  • Goering, Gregory E
  • Boyce, John R

Abstract

This paper examines the use of taxation to control external damage due to pollution when product durability is endogenously determined. A special form of the emissions function is also examined which is equivalent to an excise tax on output. The model indicates that many conventional results in the durability and taxation literature need not hold when durability is endogenously determined. The analysis shows durability may not be independent of industry structure nor will firms minimize their manufacturing costs of providing service. In addition, the second-best tax on imperfectly competitive firms is not necessarily less than the tax on a competitive firm with endogenous durability. Copyright 1999 by Blackwell Publishing Ltd

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Industrial Economics.

Volume (Year): 47 (1999)
Issue (Month): 1 (March)
Pages: 125-43

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Handle: RePEc:bla:jindec:v:47:y:1999:i:1:p:125-43

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821

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Cited by:
  1. Sagasta Elorza, Amagoia & Saracho de la Torre, Ana Isabel, 2003. "Mergers in Durable Goods Industries," DFAEII Working Papers 2004-03, University of the Basque Country - Department of Foundations of Economic Analysis II.
  2. Sagasta Elorza, Amagoia & Usategui Díaz de Otalora, José María, 2012. "Optimal overall emissions taxation in durable goods oligopoly," DFAEII Working Papers DFAEII;2012-18, University of the Basque Country - Department of Foundations of Economic Analysis II.
  3. Thomas Eichner & Marco Runkel, 2000. "Efficient and Sustainable Management of Product Durability and Recyclability," Volkswirtschaftliche Diskussionsbeiträge 88-00, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
  4. Marco Runkel, 2003. "Product Durability and Extended Producer Responsibility in Solid Waste Management," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(2), pages 161-182, February.

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