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Trade liberalization, consumption externalities and the environment: a mixed duopoly approach

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Author Info
Shuichi Ohori () (Kyoto University)
Abstract

This paper studies the environmental tax and trade liberalization in a mixed duopolistic market wherein environmental damage is associated with consumption. In particular, we consider the effect of privatization on environmental tax and the effect of trade liberalization on the environment in an importing country. The results show that the optimal environmental tax in a mixed duopoly is higher than the Pigouvian level and the optimal tax in a pure duopoly. Furthermore, trade liberalization does not alter the environment.

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File URL: http://economicsbulletin.vanderbilt.edu/2006/volume17/EB-06Q00001A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 17 (2006)
Issue (Month): 5 ()
Pages: 1-9
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ebl:ecbull:v:17:y:2006:i:5:p:1-9

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Related research
Keywords: consumption externalities; environmental tax; privatization; trade liberalization;

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Find related papers by JEL classification:
Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
L5 - Industrial Organization - - Regulation and Industrial Policy

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  1. Damania, Richard & Fredriksson, Per G. & List, John A., 2003. "Trade liberalization, corruption, and environmental policy formation: theory and evidence," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 490-512, November. [Downloadable!] (restricted)
  2. Randall Bluffstone & Theodore Panayotou, 2000. "Environmental Liability and Privatization in Central and Eastern Europe: Toward an Optimal Policy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 17(4), pages 335-352, December. [Downloadable!] (restricted)
  3. Sturm, Daniel & Ulph, Alistair, 2002. "Environment and trade: the implications of imperfect information and political economy," World Trade Review, Cambridge University Press, vol. 1(03), pages 235-256, November. [Downloadable!]
  4. Debashis Pal & Mark D. White, 1998. "Mixed Oligopoly, Privatization, and Strategic Trade Policy," Southern Economic Journal, Southern Economic Association, vol. 65(2), pages 264-281, October.
  5. Dietrich Earnhart, 2004. "Liability for Past Environmental Contamination and Privatization," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 29(1), pages 97-122, September. [Downloadable!] (restricted)
  6. Walz, Uwe & Wellisch, Dietmar, 1997. "Is free trade in the interest of exporting countries when there is ecological dumping?," Journal of Public Economics, Elsevier, vol. 66(2), pages 275-291, November. [Downloadable!] (restricted)
  7. Yu-Bong Lai, 2004. "Trade liberalization, consumption externalities and the environment," Economics Bulletin, Economics Bulletin, vol. 17(5), pages 1-9. [Downloadable!]
  8. Cremer, Helmuth & Marchand, Maurice & Thisse, Jacques-Francois, 1989. "The Public Firm as an Instrument for Regulating an Oligopolistic Market," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 283-301, April. [Downloadable!] (restricted)
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  9. Anderson, Glen D. & Zylicz, Tomasz, 1999. "The role of Polish environmental funds: Too generous or too restrictive?," Environment and Development Economics, Cambridge University Press, vol. 4(04), pages 413-448, October. [Downloadable!]
  10. Krutilla, Kerry, 1991. "Environmental regulation in an open economy," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 127-142, March. [Downloadable!] (restricted)
  11. Kenneth Fjell & Debashis Pal, 1996. "A Mixed Oligopoly in the Presence of Foreign Private Firms," Canadian Journal of Economics, Canadian Economics Association, vol. 29(3), pages 737-43, August. [Downloadable!] (restricted)
  12. Shuichi Ohori, 2006. "Optimal Environmental Tax and Level of Privatization in an International Duopoly," Journal of Regulatory Economics, Springer, vol. 29(2), pages 225-233, 03. [Downloadable!] (restricted)
  13. Fjell, Kenneth & Heywood, John S, 2002. "Public Stackelberg Leadership in a Mixed Oligopoly with Foreign Firms," Australian Economic Papers, Blackwell Publishing, vol. 41(3), pages 267-81, September. [Downloadable!] (restricted)
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