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Pollution, Pigouvian Taxes, and Asymmetric International Oligopoly

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  • Ngo Van Long

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  • Antoine Soubeyran

Abstract

We derive emission tax rules that take into account (i) the rent-shifting argument, (ii) the need to mitigate transboundary pollution, (iii) correction for restrictive oligopoly output, and (iv) correction for domestic coordination of outputs. We show that trade liberalization does not necessarily result in more pollution. Nous obtenons des règles de taxation sur la pollution qui tiennent compte de l'argument sur la redistribution des rentes, du besoin d'éviter la pollution transfrontalière, de la correction pour le volume insuffisant de l'output d'un oligopole, et de la correction pour le manque de coordination entre les firmes domestiques. Nous montrons que la libéralisation du commerce mondial n'entraîne pas nécessairement une augmentation du niveau de pollution.

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Bibliographic Info

Paper provided by CIRANO in its series CIRANO Working Papers with number 98s-30.

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Date of creation: 01 Sep 1998
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Handle: RePEc:cir:cirwor:98s-30

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Related research

Keywords: Pollution; oligopoly; trade liberalization; Pollution; oligopole; libéralisation du commerce mondial;

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References

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  1. Ulph, Alistair, 1996. "Environmental Policy and International Trade when Governments and Producers Act Strategically," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 265-281, May.
  2. Rauscher, Michael, 1994. "Environmental regulation and the location of polluting industries," Kiel Working Papers 639, Kiel Institute for the World Economy.
  3. Benchekroun, Hassan & van Long, Ngo, 1998. "Efficiency inducing taxation for polluting oligopolists," Journal of Public Economics, Elsevier, vol. 70(2), pages 325-342, November.
  4. Rauscher, Michael, 1994. "Environmental Regulation and the Location of Polluting Industries," CEPR Discussion Papers 1032, C.E.P.R. Discussion Papers.
  5. Alistair fnUlph, 1996. "Environmental policy instruments and imperfectly competitive international trade," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 7(4), pages 333-355, June.
  6. Gaudet, Gerard & Salant, Stephen W, 1991. "Uniqueness of Cournot Equilibrium: New Results from Old Methods," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 399-404, April.
  7. Katsoulacos, Yannis & Xepapadeas, Anastasios, 1995. " Environmental Policy under Oligopoly with Endogenous Market Structure," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(3), pages 411-20, September.
  8. Buchanan, James M, 1969. "External Diseconomies, Corrective Taxes, and Market Structure," American Economic Review, American Economic Association, vol. 59(1), pages 174-77, March.
  9. Anderson, Kym, 1995. "The Entwining of Trade Policy with Environmental and Labour Standards," CEPR Discussion Papers 1158, C.E.P.R. Discussion Papers.
  10. Van Long, N. & Soubeyran, A., 1997. "Cost Manipulation in an Asymmetric Oligopoly: The Taxation Problem," ASSET - Instituto De Economia Publica 173, ASSET (Association of Southern European Economic Theorists).
  11. Long, N.V. & Soubeyran, A., 1998. "Cost Manipulation in Oligopoly: A Duality Approach," G.R.E.Q.A.M. 98a22, Universite Aix-Marseille III.
  12. Kennedy Peter W., 1994. "Equilibrium Pollution Taxes in Open Economies with Imperfect Competition," Journal of Environmental Economics and Management, Elsevier, vol. 27(1), pages 49-63, July.
  13. Barnett, A H, 1980. "The Pigouvian Tax Rule under Monopoly," American Economic Review, American Economic Association, vol. 70(5), pages 1037-41, December.
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Citations

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Cited by:
  1. Maia David & Bernard Sinclair-Desgagné, 2004. "Environmental Regulation and the Eco-industry," CIRANO Working Papers 2004s-42, CIRANO.
  2. Requate, Till, 2005. "Environmental Policy under Imperfect Competition : A Survey," Economics Working Papers 2005,12, Christian-Albrechts-University of Kiel, Department of Economics.
  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.
  4. Ngo Van Long & Antoine Soubeyran, 2003. "Favoritism in Vertical Relationship: Input Prices and Access Quality," CIRANO Working Papers 2003s-14, CIRANO.

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