This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Environmental policy in an international duopoly : an analysis of feedback investment strategies

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Feenstra, T.
Kort, P.
Zeeuw, A. de (Tilburg University, Center for Economic Research)

Additional information is available for the following registered author(s):

Abstract

This paper discusses environmental policy instruments in a differential-game model of international trade with oligopolistic competition. Strategic interactions occur if firms use feedback strategies and therefore react on decisions of their com-petitor. Eventually this harms firm profits, because all firms act strategically. A firm reacts differently if its competitor is subject to an environmental standard than if it is subject to an environmental tax. Under open-loop investment strategies and feedback strategies of energy use, environmental taxes always give rise to more investment for strategic reasons than standards. This confirms results of multistage static models of the same problem. The new result is that under feedback investment strategies the reverse can be the case.

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.

File URL: http://arno.uvt.nl/show.cgi?fid=3548
File Format: application/postscript
File Function:
Download Restriction: no
File URL: http://arno.uvt.nl/show.cgi?fid=3547
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 43.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 1997
Date of revision:
Handle: RePEc:dgr:kubcen:199743

Contact details of provider:
Web page: http://center.uvt.nl

For technical questions regarding this item, or to correct its listing, contact: (Corry Stuyts).

Related research
Keywords:

Find related papers by JEL classification:
C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
D92 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Firm Choice and Growth, Investment, or Financing
Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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. Flaherty, M Therese, 1980. "Industry Structure and Cost-Reducing Investment," Econometrica, Econometric Society, vol. 48(5), pages 1187-1209, July. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
  3. Morrison, C J, 1994. "The Cyclical Nature of Markups in Canadian Manufacturing: A Production Theory Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 9(3), pages 269-82, July-Sept. [Downloadable!] (restricted)
  4. Ilmakunnas, P & Torma, H, 1994. "Energy Crises and Change of Technology," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 9(3), pages 305-20, July-Sept. [Downloadable!] (restricted)
  5. Morrison, Catherine J, 1993. "Investment in Capital Assets and Economic Performance: The U.S. Chemicals and Primary-Metals Industries in Transition," Journal of Business & Economic Statistics, American Statistical Association, vol. 11(1), pages 45-60, January.
    Other versions:
  6. Hartl, R.F. & Kort, P.M., 1995. "Capital Accumulation of a Firm Facing an Emissions Tax," Papers 9578, Tilburg - Center for Economic Research.
    Other versions:
  7. Pindyck, Robert S & Rotemberg, Julio J, 1983. "Dynamic Factor Demands and the Effects of Energy Price Shocks," American Economic Review, American Economic Association, vol. 73(5), pages 1066-79, December. [Downloadable!] (restricted)
  8. Barbara J. Spencer & James A. Brander, 1982. "Strategic Commitment with R&D: The Symmetric Case," Working Papers 516, Queen's University, Department of Economics.
    Other versions:
  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)
Full references

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. Martina Stimming, 1999. "Capital-accumulation games under environmental regulation and duopolistic competition," Journal of Economics, Springer, vol. 69(3), pages 267-287, October. [Downloadable!] (restricted)
Statistics
Access and download statistics

Did you know? To receive notification of recent additions to the database, subscribe to the free NEP reports.

This page was last updated on 2009-12-21.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.