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Reciprocal Dumping and Environmental Taxes

Listed author(s):
  • Sandoval-Bravo, Salvador.


    (Universidad de Guadalajara.)

  • Coronado-Ramírez, Semei Leopoldo.


    (Universidad de Guadalajara.)

  • Porras-Serrano, Jesús.


    (Instituto Politécnico Nacional.)

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    This paper calculates the optimal tax of the emission of polluting agents in oligopolistic possess and under conditions of the reciprocal dumping, in which the firms count on the appropriate technology to decrease the pollution and can decide the amount of emissions generated. In this model the optimal tax mainly depends on the amount of the marginal disutility to pollute, as well as the abatement cost./ En este trabajo se calcula el impuesto óptimo a la emisión de contaminantes en competencia oligopolística y en condiciones de dumping recíproco, en el que las empresas cuentan con la tecnología adecuada para disminuir la contaminación y poder decidir la cantidad de emisiones generadas. En este modelo, el impuesto óptimo depende principalmente de la cantidad de la desutilidad marginal de contaminar, además del costo de abatimiento.

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    Article provided by Escuela Superior de Economía, Instituto Politécnico Nacional in its journal Panorama Económico.

    Volume (Year): VII (2012)
    Issue (Month): 14 (primer semestre)
    Pages: 97-119

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    Handle: RePEc:ipn:panora:v:vii:y:2012:i:14:p:97-119
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    1. Brander, James & Krugman, Paul, 1983. "A 'reciprocal dumping' model of international trade," Journal of International Economics, Elsevier, vol. 15(3-4), pages 313-321, November.
    2. Lancaster, Kelvin, 1980. "Intra-industry trade under perfect monopolistic competition," Journal of International Economics, Elsevier, vol. 10(2), pages 151-175, May.
    3. Venables, Anthony J., 1985. "Trade and trade policy with imperfect competition: The case of identical products and free entry," Journal of International Economics, Elsevier, vol. 19(1-2), pages 1-19, August.
    4. Lahiri, Sajal & Ono, Yoshiyasu, 2000. "Protecting the environment in the presence of foreign direct investment: tax versus quantity restriction," Economics Discussion Papers 9985, University of Essex, Department of Economics.
    5. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    6. Brander, James A., 1981. "Intra-industry trade in identical commodities," Journal of International Economics, Elsevier, vol. 11(1), pages 1-14, February.
    7. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
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