IDEAS home Printed from https://ideas.repec.org/p/kyu/dpaper/23.html
   My bibliography  Save this paper

Pollution Tax and Social Welfare in Oligopoly: Asymmetric Taxation on Identical Polluters

Author

Listed:
  • Satoshi Honma

    () (Faculty of Economics, Kyushu Sangyo University)

Abstract

We study asymmetric pollution taxation on identical polluting oligopolists engaged in Cournot competition. It has been studied that an identical firms must be treated symmetrically and that the second-best pollution tax is a uniform tax. But, asymmetric treatment of identical firms generates an aggregate cost-saving effect, which is oligopoly-specific property. We consider a manipulation of the uniform tax vector without changing the total emissions which will be emitted under the uniform pollution tax. We derive a sufficient condition that guarantees that unequal taxation on ex ante identical polluters increases welfare. We show that if the sufficient condition is satisfied, unequal emission standards as well as unequal taxation increases welfare.

Suggested Citation

  • Satoshi Honma, 2005. "Pollution Tax and Social Welfare in Oligopoly: Asymmetric Taxation on Identical Polluters," Discussion Papers 23, Kyushu Sangyo University, Faculty of Economics.
  • Handle: RePEc:kyu:dpaper:23
    as

    Download full text from publisher

    File URL: http://www.ip.kyusan-u.ac.jp/keizai-kiyo/dp23.pdf
    File Function: First version, 2005
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gerda Dewit & Dermot Leahy, 2015. "Tax Uniformity: A Commitment Device for Restraining Opportunistic Behavior," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 17(5), pages 641-672, October.

    More about this item

    Keywords

    Cournot Duopoly; Firm Asymmetry; Pollution Tax; Environmental Policy;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kyu:dpaper:23. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yoshitsugu Kitazawa). General contact details of provider: http://edirc.repec.org/data/feksujp.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.