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An Optimal Tax/Subsidy for Output and Pollution Control under Asymmetric Information in Oligopoly Markets

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  • Kim, Jae-Cheol
  • Chang, Ki-Bok
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    Abstract

    This paper constructs an optimal incentive tax/subsidy scheme in an oligopoly market with pollution, as a generalization of the Loeb-Magat scheme, which is nondiscriminatory and requires less information for implementation than the conventional ones. Some interesting properties of the scheme are discussed. Copyright 1993 by Kluwer Academic Publishers

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    Bibliographic Info

    Article provided by Springer in its journal Journal of Regulatory Economics.

    Volume (Year): 5 (1993)
    Issue (Month): 2 (June)
    Pages: 183-97

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    Handle: RePEc:kap:regeco:v:5:y:1993:i:2:p:183-97

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    Web page: http://www.springerlink.com/link.asp?id=100298

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    Cited by:
    1. Lisandro Abrego & Carlo Perroni, 2002. "Investment subsidies and Time-Consistent Environmental Policy," Oxford Economic Papers, Oxford University Press, vol. 54(4), pages 617-635, October.
    2. Manel Antelo, 2012. "A Revenue-raising Government Taxing a Firm with Private Information," Hacienda Pública Española, IEF, IEF, vol. 203(4), pages 57-86, December.
    3. Manel Antelo, 2011. "Output taxation by a revenue-raising government under signaling," Economic Working Papers at Centro de Estudios Andaluces E2011/03, Centro de Estudios Andaluces.
    4. Lee, Sang-Ho, 1996. "An optional permit system for global pollution control," Economics Letters, Elsevier, vol. 50(1), pages 79-84, January.
    5. Kim, Jae-Cheol & Lee, Sang-Ho, 1995. "An optimal regulation in an intertemporal oligopoly market: The Generalized Incremental Surplus Subsidy (GISS) scheme," Information Economics and Policy, Elsevier, vol. 7(3), pages 225-249, September.
    6. James E. Prieger & Nicholas J. Sanders, 2011. "Verifiable and Non-Verifiable Anonymous Mechanisms for Regulating a Polluting Monopolist," Discussion Papers, Stanford Institute for Economic Policy Research 10-034, Stanford Institute for Economic Policy Research.
    7. Lee, Sang-Ho & Kim, Jae-Cheol, 1995. "Oligopolistic incentives for pollution control with nonzero conjectures," Economics Letters, Elsevier, vol. 49(1), pages 95-99, July.
    8. Arguedas, Carmen & van Soest, Daan P., 2009. "On reducing the windfall profits in environmental subsidy programs," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 192-205, September.
    9. Luis Corchón & Félix Marcos, 2010. "Price regulation in oligopoly," Economics Working Papers we100101, Universidad Carlos III, Departamento de Economía.
    10. Berglann, Helge, 2012. "Implementing optimal taxes using tradable share permits," Journal of Environmental Economics and Management, Elsevier, vol. 64(3), pages 402-409.
    11. Antelo, Manel & Loureiro, Maria L., 2009. "Asymmetric information, signaling and environmental taxes in oligopoly," Ecological Economics, Elsevier, vol. 68(5), pages 1430-1440, March.

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