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Environmental policies in a differentiated oligopoly revisited

  • Fujiwara, Kenji

Constructing a model of polluting oligopoly with product differentiation, we consider how product differentiation, together with the presence and absence of free entry, affects optimal pollution tax/subsidy policies. The sign of the short- and long-run optimal pollution taxes are highly sensitive to the parameter measuring product differentiation as well as the presence of free entry. How they are affected by a change in product differentiation, which is not addressed in the existing literature, is also made clear.

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File URL: http://www.sciencedirect.com/science/article/B6VFJ-4VXB8T8-2/2/56783a1d15411a77979f3393e844e834
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Article provided by Elsevier in its journal Resource and Energy Economics.

Volume (Year): 31 (2009)
Issue (Month): 3 (August)
Pages: 239-247

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Handle: RePEc:eee:resene:v:31:y:2009:i:3:p:239-247
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505569

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