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Pollution, Pigouvian Taxes, and Asymmetric International Oligopoly

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Author Info
Ngo Van Long ()
Antoine Soubeyran

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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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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;

Find related papers by JEL classification:
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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.:

  1. Buchanan, James M, 1969. "External Diseconomies, Corrective Taxes, and Market Structure," American Economic Review, American Economic Association, vol. 59(1), pages 174-77, March. [Downloadable!] (restricted)
  2. Van Long, N. & Soubeyran, A., 1997. "Cost Manipulation in Oligopoly: A Duality Approach," ASSET - Instituto De Economia Publica 174, ASSET (Association of Southern European Economic Theorists).
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  3. Michael Rauscher, 2001. "International Trade, Foreign Investment, and the Enivronment," Thuenen-Series of Applied Economic Theory 29, University of Rostock, Institute of Economics, Germany. [Downloadable!]
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  4. Barnett, A H, 1980. "The Pigouvian Tax Rule under Monopoly," American Economic Review, American Economic Association, vol. 70(5), pages 1037-41, December. [Downloadable!] (restricted)
  5. 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).
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  6. Rauscher, Michael, 1994. "Environmental Regulation and the Location of Polluting Industries," CEPR Discussion Papers 1032, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
  8. Katsoulacos, Yannis & Xepapadeas, Anastasios, 1995. " Environmental Policy under Oligopoly with Endogenous Market Structure," Scandinavian Journal of Economics, Blackwell Publishing, vol. 97(3), pages 411-20, September.
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  9. 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. [Downloadable!] (restricted)
  10. Anderson, Kym, 1995. "The Entwining of Trade Policy with Environmental and Labour Standards," CEPR Discussion Papers 1158, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  11. Hassan Benchekroun & Ngo Van Long, 1997. "Efficiency Inducing Taxation for Polluting Oligopolists," CIRANO Working Papers 97s-21, CIRANO. [Downloadable!]
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  12. Gaudet, Gerard & Salant, Stephen W, 1991. "Uniqueness of Cournot Equilibrium: New Results from Old Methods," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 399-404, April. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Requate, Till, 2005. "Environmental Policy under Imperfect Competition : A Survey," Economics Working Papers 2005,12, Christian-Albrechts-University of Kiel, Department of Economics. [Downloadable!]
  2. Bernard Sinclair-Desgagné & Maia David, 2005. "Environmental Regulationand the Eco-Industry," Working Papers 2005.56, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
  3. Bernard Sinclair-Desgagné & Alain-Désiré Nimubona, 2005. "The Pigouvian Tax Rule in the Presence of an Eco-Industry," Working Papers 2005.57, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
  4. Ngo Van Long & Antoine Soubeyran, 2003. "Favoritism in Vertical Relationship: Input Prices and Access Quality," CIRANO Working Papers 2003s-14, CIRANO. [Downloadable!]
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