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Does partial privatization improve the environment?

Author

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  • Rupayan Pal

    (Indira Gandhi Institute of Development Research)

  • Bibhas Saha

Abstract

This paper shows that, in case of differentiated products mixed duopoly, environmental damage increases (decreases) with the level of privatization, if the level of privatization is less (more) than certain level. It also shows that partial privatization is optimal from the social welfare point of view. However, the social welfare maximizing level of privatization damages the environment most.

Suggested Citation

  • Rupayan Pal & Bibhas Saha, 2010. "Does partial privatization improve the environment?," Microeconomics Working Papers 23021, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:microe:23021
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    File URL: http://www.eaber.org/node/23021
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    References listed on IDEAS

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    Cited by:

    1. Kazuhiko Kato, 2013. "Optimal degree of privatization and the environmental problem," Journal of Economics, Springer, vol. 110(2), pages 165-180, October.

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    More about this item

    Keywords

    Privatization; mixed duopoly; environmental damage; environmental tax; social welfare;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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