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Environmental tax and trade liberalization in a mixed duopoly

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Author Info
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.

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File URL: http://www.kier.kyoto-u.ac.jp/DP/DP622.pdf
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Paper provided by Kyoto University, Institute of Economic Research in its series KIER Working Papers with number 622.

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Length: 8pages
Date of creation: Jun 2006
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Handle: RePEc:kyo:wpaper:622

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  1. Damania, Richard & Fredriksson, Per G. & List, John A., 2003. "Trade liberalization, corruption, and environmental policy formation: theory and evidence," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 490-512, November. [Downloadable!] (restricted)
  2. Randall Bluffstone & Theodore Panayotou, 2000. "Environmental Liability and Privatization in Central and Eastern Europe: Toward an Optimal Policy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 17(4), pages 335-352, December. [Downloadable!] (restricted)
  3. Debashis Pal & Mark D. White, 1998. "Mixed Oligopoly, Privatization, and Strategic Trade Policy," Southern Economic Journal, Southern Economic Association, vol. 65(2), pages 264-281, October.
  4. Walz, Uwe & Wellisch, Dietmar, 1997. "Is free trade in the interest of exporting countries when there is ecological dumping?," Journal of Public Economics, Elsevier, vol. 66(2), pages 275-291, November. [Downloadable!] (restricted)
  5. Yu-Bong Lai, 2004. "Trade liberalization, consumption externalities and the environment," Economics Bulletin, Economics Bulletin, vol. 17(5), pages 1-9. [Downloadable!]
  6. Cremer, Helmuth & Marchand, Maurice & Thisse, Jacques-Francois, 1989. "The Public Firm as an Instrument for Regulating an Oligopolistic Market," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 283-301, April. [Downloadable!] (restricted)
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  7. Anderson, Glen D. & Zylicz, Tomasz, 1999. "The role of Polish environmental funds: Too generous or too restrictive?," Environment and Development Economics, Cambridge University Press, vol. 4(04), pages 413-448, October. [Downloadable!]
  8. Krutilla, Kerry, 1991. "Environmental regulation in an open economy," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 127-142, March. [Downloadable!] (restricted)
  9. Kenneth Fjell & Debashis Pal, 1996. "A Mixed Oligopoly in the Presence of Foreign Private Firms," Canadian Journal of Economics, Canadian Economics Association, vol. 29(3), pages 737-43, August. [Downloadable!] (restricted)
  10. Shuichi Ohori, 2006. "Optimal Environmental Tax and Level of Privatization in an International Duopoly," Journal of Regulatory Economics, Springer, vol. 29(2), pages 225-233, 03. [Downloadable!] (restricted)
  11. Fjell, Kenneth & Heywood, John S, 2002. "Public Stackelberg Leadership in a Mixed Oligopoly with Foreign Firms," Australian Economic Papers, Blackwell Publishing, vol. 41(3), pages 267-81, September. [Downloadable!] (restricted)
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