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Production externality and productivity of labor

Author

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  • Juan Carlos Bárcena-Ruiz

    (University of the Basque Country)

Abstract

In this paper we consider two imperfectly competitive industries, with the polluting emissions from one industry harming the productivity of labor in the other. The polluting industry has to pay an environmental tax chosen by the government. In this framework, we analyze how the different organizational structure adopted by workers affect the environmental tax set by the government, total pollution emissions from the polluting industry and the productivity of workers in the industry that suffers the externality. We obtain that this depends on the degree to which pollution emissions from the polluting industry affects the marginal product of labor in the other industry.

Suggested Citation

  • Juan Carlos Bárcena-Ruiz, 2011. "Production externality and productivity of labor," Hacienda Pública Española, IEF, vol. 196(1), pages 65-78, january.
  • Handle: RePEc:hpe:journl:y:2011:v:196:i:1:p:65-78
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    References listed on IDEAS

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    1. Copeland, Brian R. & Taylor, M. Scott, 1999. "Trade, spatial separation, and the environment," Journal of International Economics, Elsevier, vol. 47(1), pages 137-168, February.
    2. Symeonidis, George, 2010. "Downstream merger and welfare in a bilateral oligopoly," International Journal of Industrial Organization, Elsevier, vol. 28(3), pages 230-243, May.
    3. Dobson, Paul W., 1994. "Multifirm unions and the incentive to adopt pattern bargaining in oligopoly," European Economic Review, Elsevier, vol. 38(1), pages 87-100, January.
    4. Brander, James A. & Spencer, Barbara J., 1988. "Unionized oligopoly and international trade policy," Journal of International Economics, Elsevier, vol. 24(3-4), pages 217-234, May.
    5. Maia David & Bernard Sinclair-Desgagné, 2005. "Environmental Regulation and the Eco-Industry," Journal of Regulatory Economics, Springer, vol. 28(2), pages 141-155, September.
    6. Barnett, A H, 1980. "The Pigouvian Tax Rule under Monopoly," American Economic Review, American Economic Association, vol. 70(5), pages 1037-1041, December.
    7. Kennedy Peter W., 1994. "Equilibrium Pollution Taxes in Open Economies with Imperfect Competition," Journal of Environmental Economics and Management, Elsevier, vol. 27(1), pages 49-63, July.
    8. Booth,Alison L., 1994. "The Economics of the Trade Union," Cambridge Books, Cambridge University Press, number 9780521468398, January.
    9. Frederick Ploeg & Aart Zeeuw, 1992. "International aspects of pollution control," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(2), pages 117-139, March.
    10. Ulph, Alistair, 1996. "Environmental Policy and International Trade when Governments and Producers Act Strategically," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 265-281, May.
    11. Juan Bárcena-ruiz & María Garzón, 2003. "Strategic Environmental Standards, Wage Incomes and the Location of Polluting Firms," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(2), pages 121-139, February.
    12. Thorsten Bayındır-Upmann, 2004. "On the Double Dividend under Imperfect Competition," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 28(2), pages 169-194, June.
    13. Benarroch, Michael & Thille, Henry, 2001. "Transboundary pollution and the gains from trade," Journal of International Economics, Elsevier, vol. 55(1), pages 139-159, October.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Production externality; productivity of labor; environmental taxes; imperfect competition; unionized labor.;

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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