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Environmental Policy under Oligopoly with Endogenous Market Structure

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Author Info
 Katsoulacos, Yannis
Xepapadeas, Anastasios

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Abstract

Emission taxes under both fixed-number oligopoly and endogenous market structure, which are the most relevant market structures for policy issues, are examined. In the latter case, and contrary to what is expected under imperfect competition, the optimal tax could exceed marginal external damages, which implies that externalities generated by oligopolistic firms could be optimally controlled by overinternalizing environmental damages. Under endogenous market structure, a scheme consisting of a license fee and a second-best underinternalizing emission tax can increase social welfare as compared to the use of a single emission tax exceeding marginal damages. Copyright 1995 by The editors of the Scandinavian Journal of Economics.

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Publisher Info
Article provided by Blackwell Publishing in its journal Scandinavian Journal of Economics.

Volume (Year): 97 (1995)
Issue (Month): 3 (September)
Pages: 411-20
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Handle: RePEc:bla:scandj:v:97:y:1995:i:3:p:411-20

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  1. Claude, Denis & Tidball, Mabel, 2006. "Efficiency inducing taxation for polluting oligopolists: the irrelevance of privatization," MPRA Paper 776, University Library of Munich, Germany, revised 15 Oct 2006. [Downloadable!]
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  2. MAHENC Philippe, 2008. "Optimal environmental taxation when green alternative is available," Working Papers 08.04.248, LERNA, University of Toulouse. [Downloadable!]
  3. Alain-Désiré Nimubona & Bernard Sinclair-Desgagné, 2005. "The Pigouvian Tax Rule in the Presence of an Eco-Industry," CIRANO Working Papers 2005s-21, CIRANO. [Downloadable!]
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  4. Ngo Van Long & Antoine Soubeyran, 1998. "Pollution, Pigouvian Taxes, and Asymmetric International Oligopoly," CIRANO Working Papers 98s-30, CIRANO. [Downloadable!]
  5. Bernard Sinclair-Desgagné & Maia David, 2005. "Environmental Regulationand the Eco-Industry," Working Papers 2005.56, Fondazione Eni Enrico Mattei. [Downloadable!]
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  6. Indrani , Roy Chowdhury, 2006. "Mergers, pollution and environmental policy," MPRA Paper 7900, University Library of Munich, Germany. [Downloadable!]
  7. Don Fullerton & Gilbert E. Metcalf, 2002. "Cap and Trade Policies in the Presence of Monopoly and Distortionary Taxation," NBER Working Papers 8901, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Emmanuel Petrakis & Eftichios Sartzetakis & Anastasios Xepapadeas, 2005. "Environmental Information Provision as a Public Policy Instrument," Contributions to Economic Analysis & Policy, Berkeley Electronic Press, vol. 4(1), pages 1365-1365. [Downloadable!] (restricted)
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  9. Joanna Poyago-Thotoky, 2003. "Optimal Environmental Taxation, R&D Subsidization and the Role of Market Conduct," Finnish Economic Papers, Finnish Society for Economic Research, vol. 16(1), pages 15-26, Spring. [Downloadable!]
  10. Xiangkang Yin, 2003. "Corrective Taxes under Oligopoly with Inter-Firm Externalities," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(2), pages 269-277, October. [Downloadable!] (restricted)
  11. Indrani Roy Chowdhury, 2005. "Joint ventures, pollution abd environmental policy," National Institute of Public Finance and Policy, New Delhi Working Papers 31, National Institute of Public Finance and Policy, New Delhi, India. [Downloadable!]
  12. Fischer, Carolyn, 2003. "Market Power and Output-Based Refunding of Environmental Policy Revenues," Discussion Papers dp-03-27, Resources For the Future. [Downloadable!]
  13. José Moraga-González & Noemi Padrón-Fumero, 2002. "Environmental Policy in a Green Market," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(3), pages 419-447, July. [Downloadable!] (restricted)
  14. Ngo Van Long & Antoine Soubeyran, 2001. "Emission Taxes and Standards for an Asymmetric Oligopoly," CIRANO Working Papers 2001s-07, CIRANO. [Downloadable!]
  15. Nicole Gürtzgen & Michael Rauscher, 2000. "Environmental Policy, Intra-Industry Trade and Transfrontier Pollution," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 17(1), pages 59-71, September. [Downloadable!] (restricted)
  16. Fredrik Carlsson, 2000. "Environmental Taxation and Strategic Commitment in Duopoly Models," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 15(3), pages 243-256, March. [Downloadable!] (restricted)
  17. Carlo Carraro, 1998. "New Economic Theories," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(3), pages 365-381, April. [Downloadable!] (restricted)
  18. Joanna Poyago-Theotoky, 2003. "Optimal environmental taxation, R&D subsidization and the role of market conduct," Discussion Paper Series, Department of Economics 0309, Department of Economics, University of St. Andrews. [Downloadable!]
  19. Alain-Désiré Nimubona & Bernard Sinclair-Desgagné, 2005. "The Pigouvian Tax Rule in the Presence of an Eco-Industry," Post-Print hal-00243020_v1, HAL. [Downloadable!]
  20. Fischer, Carolyn, 2003. "Output-Based Allocation of Environmental Policy Revenues and Imperfect Competition," Discussion Papers dp-02-60, Resources For the Future. [Downloadable!]
  21. Ngo Van Long & Antoine Soubeyran, 1998. "Collusive Allocation of Tradeable Pollution Permits," CIRANO Working Papers 98s-31, CIRANO. [Downloadable!]
  22. Udo Ebert & Oskar von dem Hagen, 1998. "Pigouvian Taxes Under Imperfect Competition If Consumption Depends on Emissions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 12(4), pages 507-513, December. [Downloadable!] (restricted)
  23. Jiunn-Rong Chiou & Jin-Li Hu, 2001. "Environmental Research Joint Ventures under Emission Taxes," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(2), pages 129-146, October. [Downloadable!] (restricted)
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