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Global Emission Taxes and Port Privatization Policies under International Competition

Author

Listed:
  • Feng Pian

    (Department of Economics and Trade, Dalian Maritime University, 1 Linghai Road, Dalian 116026, China)

  • Lili Xu

    (Department of Economics and Trade, Dalian Maritime University, 1 Linghai Road, Dalian 116026, China)

  • Yuyan Chen

    (Department of Economics and Trade, Dalian Maritime University, 1 Linghai Road, Dalian 116026, China)

  • Sang-Ho Lee

    (Department of Economics, Chonnam National University, 77 Yongbong-Ro, Bukgu, Gwangju 61186, Korea)

Abstract

This study considers two asymmetric ports under international competition in which each country has a hub port and a private manufacturer and investigates strategic interactions between port privatization and emission tax policies. We emphasize the key role of the relative market size between the two countries and show that in a privatization choice game, port privatization is a dominant strategy in a larger country, but it will be chosen by a smaller country only if its relative market size is not so small. We also show that the coordination of global emission taxes before privatization choices can induce the equilibrium of the game to be globally optimal when the emission tax is relatively high. This finding provides an important policy implication on the climate change that coordinated global environmental policy is imperatively required in the port privatization policy.

Suggested Citation

  • Feng Pian & Lili Xu & Yuyan Chen & Sang-Ho Lee, 2020. "Global Emission Taxes and Port Privatization Policies under International Competition," Sustainability, MDPI, vol. 12(16), pages 1-25, August.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:16:p:6595-:d:399110
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    References listed on IDEAS

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    3. Wang, Jian & Zhu, Wenbo, 2023. "Analyzing the development of competition and cooperation among ocean carriers considering the impact of carbon tax policy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).

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