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Efficiency inducing taxation for polluting oligopolists: the irrelevance of privatization

  • Denis Claude

    ()

    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

  • Mabel Tidball

    ()

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - Université Montpellier I - CNRS : UMR5474 - Institut national de la recherche agronomique (INRA) : UR1135 - Centre international de hautes études agronomiques méditerranéennes [CIHEAM])

This paper studies the optimal environmental policy in a mixed market when pollution accumulates over time. Specifically, we assume quantity competition between several private firms and one partially privatized firm. The optimal emission tax is shown to be independent of the weight the privatized firm puts on social welfare. The optimal tax rule, the accumulated stock of pollution, firms' production paths and profit streams are identical irrespective of the public firm's ownership status.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-00675338.

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Date of creation: 09 Nov 2010
Date of revision:
Publication status: Published, Economics Bulletin, 2010, 2946-2954
Handle: RePEc:hal:cesptp:hal-00675338
Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00675338
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  1. repec:ebl:ecbull:v:12:y:2006:i:5:p:1-6 is not listed on IDEAS
  2. CLAUDE, Denis & HINDRIKS, Jean, 2005. "Strategic privatization and regulation policy in mixed markets," CORE Discussion Papers 2005015, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Claude, Denis & Tidball, Mabel, 2006. "Efficiency inducing taxation for polluting oligopolists: the irrelevance of privatization," MPRA Paper 776, University Library of Munich, Germany, revised 15 Oct 2006.
  4. White, Mark D., 1996. "Mixed oligopoly, privatization and subsidization," Economics Letters, Elsevier, vol. 53(2), pages 189-195, November.
  5. Hassan Benchekroun & Ngo Van Long, 1997. "Efficiency Inducing Taxation for Polluting Oligopolists," CIRANO Working Papers 97s-21, CIRANO.
  6. Yoshihiro Tomaru, 2006. "Mixed Oligopoly, Partial Privatization and Subsidization," Economics Bulletin, AccessEcon, vol. 12(5), pages 1-6.
  7. Joanna Poyago-Theotoky, 2001. "Mixed oligopoly, subsidization and the order of firms' moves: an irrelevance result," Economics Bulletin, AccessEcon, vol. 12(3), pages 1-5.
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