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Delegation and Emission Tax in a Differentiated Oligopoly

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  • Rupayan Pal

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    How product differentiation as well as strategic managerial delegation affects optimal emission tax rate, environmental damage and social welfare, under alternative modes of product market competition is examined. It shows that, under pure profit maximization, the (positive) optimal emission tax rate is not necessarily decreasing in degree of product differentiation, irrespective of the mode of competition.

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    File URL: http://www.esocialsciences.org/Download/repecDownload.aspx?fname=Document14112009255.146426E-02.pdf&fcategory=Articles&AId=2263&fref=repec
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    Paper provided by eSocialSciences in its series Working Papers with number id:2263.

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    Date of creation: Nov 2009
    Handle: RePEc:ess:wpaper:id:2263
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