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Competition Policy meets Environmental Regulation: A case for ‘green’ antitrust

Author

Listed:
  • Marie-Laure Cabon-Dhersin

    (University of Rouen Normandie)

  • Joanna Poyago-Theotoky

    (University of Salento, Department of Economics and The Australian National University, Research School of Economics)

  • Natacha Raffin

    (ENS Paris-Saclay, CEPS)

Abstract

We explore the interplay of competition and environmental policies to address the question of whether green antitrust has beneficial effects in terms of both environmental and consumer welfare performance. We focus on two environmental policy tools, an emission tax and an emission standard, and explore three particular configurations: competitive ‘green R&D, collaborative ‘green’ R&D in the form of a joint lab, and the benchmark case of no ‘green’ R&D. Firms compete in the product market by selling a homogeneous product, either by setting prices (Bertrand competition) or quantities (Cournot competition) while facing convex costs. We show that ‘green antitrust’ can unambiguously improve the effectiveness of environmental policy without undermining the interests of either consumers or producers, establishing a ‘win-win-win’ outcome.

Suggested Citation

  • Marie-Laure Cabon-Dhersin & Joanna Poyago-Theotoky & Natacha Raffin, 2026. "Competition Policy meets Environmental Regulation: A case for ‘green’ antitrust," Working Papers 2026.22, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2026.22
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    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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