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Regulation of non-point source pollution under n-firm Bertrand competition

Author

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  • Toshiharu Ishikawa

    (Chuo University)

  • Akio Matsumoto

    (Chuo University)

  • Ferenc Szidarovszky

    (Corninus University)

Abstract

This study demonstrates the conditions under which an increase in the ambient charge positively or negatively affects the total level of non-point source pollutions. For this purpose, an n-firm Bertrand framework is used in which goods are differentiated and the corresponding price functions are linear. It is shown first that the effect is definitely negative in duopoly and triopoly and second that, for n $$> 4$$ > 4 , the sign of the effect depends on the number of the firms involved and the degree of substitutability.

Suggested Citation

  • Toshiharu Ishikawa & Akio Matsumoto & Ferenc Szidarovszky, 2019. "Regulation of non-point source pollution under n-firm Bertrand competition," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(4), pages 579-597, October.
    • Handle: RePEc:spr:envpol:v:21:y:2019:i:4:d:10.1007_s10018-019-00243-9
    DOI: 10.1007/s10018-019-00243-9
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    References listed on IDEAS

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    1. Segerson, Kathleen, 1988. "Uncertainty and incentives for nonpoint pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 87-98, March.
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    Cited by:

    1. Akio Matsumoto & Ferenc Szidarovszky, 2022. "N-firm oligopolies with pollution control and random profits," Asia-Pacific Journal of Regional Science, Springer, vol. 6(3), pages 1017-1039, October.
    2. Akio Matsumoto & Ferenc Szidarovszky, 2021. "Controlling non-point source pollution in Cournot oligopolies with hyperbolic demand," SN Business & Economics, Springer, vol. 1(2), pages 1-15, February.

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