Privatization and the Environment in a Mixed Duopoly with Pollution Abatement
AbstractThe purpose of this note is to re-examine whether privatization improves the environment or not in a mixed duopolistic model. In our model, both firms adopt pollution abatement technologies in response to the environmental tax imposed by the government. It is shown that privatization unambiguously reduces the pollution levels of firms. Namely, privatization does improve the environment. Moreover, by implementing partial-privatization policy, social welfare can be enhanced.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 29 (2009)
Issue (Month): 4 ()
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Environmental Taxes; Mixed Oligopoly: Privatization;
Find related papers by JEL classification:
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
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