Does Partial Privatization Improve the Environment?
AbstractThis 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. [WP-2010-018]
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Date of creation: Nov 2010
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Privatization; mixed duopoly; environmental damage; environmental tax; social welfare;
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