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Environmental tax and trade liberalization in a mixed duopoly

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  • Shuichi Ohori

    (Institute of Economic Research, Kyoto University)

Abstract

This paper studies the environmental tax and trade liberalization in a mixed duopolistic market wherein environmental damage is associated with consumption. In particular, we consider the effect of privatization on environmental tax and the effect of trade liberalization on the environment in an importing country. The results show that the optimal environmental tax in a mixed duopoly is higher than the Pigouvian level and the optimal tax in a pure duopoly. Furthermore, trade liberalization does not alter the environment.

Suggested Citation

  • Shuichi Ohori, 2006. "Environmental tax and trade liberalization in a mixed duopoly," KIER Working Papers 622, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:622
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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP622.pdf
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    References listed on IDEAS

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