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Production externality and productivity of labor

Author

Listed:
  • 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 / Review of Public Economics, 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

    as
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    More about this item

    Keywords

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

    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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