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Consumers awareness and environmental policy in differentiated mixed oligopoly

Author

Listed:
  • Hsu, Chu-Chuan
  • Lee, Jen-Yao
  • Wang, Leonard F.S.

Abstract

In this paper, we show that the implications of consumer awareness on environmental policy in both mixed and private oligopolies under regulated entry and free entry. The emission taxes are charged when the market imperfection and consumer cognition of pollution are low, while the consumption externality is substantial. However, when the consumers’ cognition of pollution damage is increasing and the consumers are willing to pay (WTP) less for the polluted good, the government should choose a lower emission tax.

Suggested Citation

  • Hsu, Chu-Chuan & Lee, Jen-Yao & Wang, Leonard F.S., 2017. "Consumers awareness and environmental policy in differentiated mixed oligopoly," International Review of Economics & Finance, Elsevier, vol. 51(C), pages 444-454.
  • Handle: RePEc:eee:reveco:v:51:y:2017:i:c:p:444-454
    DOI: 10.1016/j.iref.2017.07.001
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    References listed on IDEAS

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    Cited by:

    1. Xu, Lili & Lee, Sang-Ho, 2018. "The timing of environmental policies with excess burden of taxation in free-entry mixed markets," MPRA Paper 83560, University Library of Munich, Germany.
    2. Garcia, Arturo & Leal, Mariel & Lee, Sang-Ho, 2018. "Time-inconsistent environmental policies with a consumer-friendly firm: tradable permits versus emission tax," MPRA Paper 86407, University Library of Munich, Germany.
    3. repec:eee:reveco:v:55:y:2018:i:c:p:68-77 is not listed on IDEAS

    More about this item

    Keywords

    Consumers awareness; Product differentiation; Environmental policies;

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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