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Privatization and environmental policy in a mixed oligopoly

Author

Listed:
  • Quan Dong
  • Juan Carlos Bárcena-Ruiz
  • María Begoña Garzón

Abstract

This paper analyzes the interaction between two political economy decisions by a government: whether to privatize a public firm and what environmental policy to choose (an environmental tax or an emission standard). We find that when market competition is weak the government does not privatize the public firm and sets an environmental tax. When it is intermediate the public firm is not privatized and the government sets an environmental standard. Finally, when market competition is strong the government privatizes the public firm and is indifferent between a tax and a standard.

Suggested Citation

  • Quan Dong & Juan Carlos Bárcena-Ruiz & María Begoña Garzón, 2019. "Privatization and environmental policy in a mixed oligopoly," Estudios de Economia, University of Chile, Department of Economics, vol. 46(2), pages 173-190, December.
    • Handle: RePEc:udc:esteco:v:46:y:2019:i:1:p:173-190
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    File URL: https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/55187/58216
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    Citations

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    Cited by:

    1. Juan Carlos Bárcena‐Ruiz & María Begoña Garzón, 2022. "Environmental policy instruments and ownership of firms," Manchester School, University of Manchester, vol. 90(4), pages 385-408, July.
    2. Juan Carlos Bárcena-Ruiz & María Begoña Garzón, 2020. "Partial privatization in an international mixed oligopoly under product differentiation," Journal of Economics, Springer, vol. 131(1), pages 77-100, September.
    3. Quan Dong & Juan Carlos Bárcena-Ruiz, 2021. "Corporate social responsibility and partial privatisation of state holding corporations," Journal of Economics, Springer, vol. 132(3), pages 223-250, April.

    More about this item

    Keywords

    Environmental tax; emission standard; mixed oligopoly; privatization.;
    All these keywords.

    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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