Environmental Regulation and Horizontal Mergers in the Eco-industry
AbstractThis paper considers the environmental policy and welfare implications of a merger between environment firms (i.e., firms managing environmental resources or supplying pollution abatement goods and services). The traditional analysis of mergers in Cournot oligopolies is extended in two ways. First, we show how environmental policy affects the incentives of environment firms to merge. Second, we stress that mergers in the eco-industry impact welfare beyond what is observed in other sectors, due to an extra effect on pollution abatement efforts; this might lead to disagreements between an anti-trust agency seeking to limit market concentration which can be detrimental to consumer surplus and a benevolent regulator who maximizes total welfare.
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Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2008.46.
Date of creation: May 2008
Date of revision:
Eco-Industry; Environmental Policy; Horizontal Mergers;
Other versions of this item:
- Canton, Joan & David, Maia & Sinclair-DesgagnÃ©, Bernard, 2012. "Environmental Regulation and Horizontal Mergers in the Eco-industry," Strategic Behavior and the Environment, now publishers, vol. 2(2), pages 107-132, July.
- Canton, Joan & David, Maia & Sinclair-Desgagne, Bernard, 2008. "Environmental regulation and horizontal mergers in the eco-industry," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44456, European Association of Agricultural Economists.
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-06 (All new papers)
- NEP-COM-2008-08-06 (Industrial Competition)
- NEP-ENV-2008-08-06 (Environmental Economics)
- NEP-IND-2008-08-06 (Industrial Organization)
- NEP-REG-2008-08-06 (Regulation)
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.:
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