Rafael S. Espinosa Ramírez () (Departamento de Economía, Universidad de Guadalajara, Guadalajara, México.) M. Ozgur Kayalica () (Departament of Management Engineering, Istanbul Technical University, Istanbul, Turkey.)
Abstract
A Cournot oligopolistic setting model of trade is characterized by local and foreign firms competing in the presence of pollution quota and tax. Local firms are foreign-owned (FDI) and repatriate their profits. First, we analyze the impact on welfare given by the merger of the local firms, as a response to external firms’ competition and pollution abatement costs. Second, when merger is welfare decreasing, we study the best response of the government in order to compensate this negative externality. Finally, we compare the pollution quota and tax in order to determine their efficiency as a policy instrument.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Volume (Year): XVI (2007) Issue (Month): 1 (January-June) Pages: 47-74 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF
Handle: RePEc:emc:ecomex:v:16:y:2007:i:1:p:47-74
Contact details of provider:
For technical questions regarding this item, or to correct its listing, contact: (Ricardo Tiscareño).
Find related papers by JEL classification: F2 - International Economics - - International Factor Movements and International Business H2 - Public Economics - - Taxation, Subsidies, and Revenue L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.: