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The environmental effects of ambient charges in a partially cooperating duopoly

Author

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  • Ohnishi, Kazuhiro

Abstract

This paper explores a Cournot duopoly model involving two firms that engage in partial cooperation. The paper reevaluates the effectiveness of using ambient charges as a policy tool to control industrial nonpoint-source pollution. The findings suggest that when the level of cooperation between the firms is relatively low, increasing ambient charges can serve as an effective means to reduce pollution. By analyzing the strategic interactions between the firms, the paper highlights how limited cooperation influences the success of environmental policies. These insights contribute to a better understanding of regulatory approaches in industries where firms have interdependent pollution outcomes.

Suggested Citation

  • Ohnishi, Kazuhiro, 2026. "The environmental effects of ambient charges in a partially cooperating duopoly," MPRA Paper 128241, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:128241
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    File URL: https://mpra.ub.uni-muenchen.de/128241/1/MPRA_paper_128241.pdf
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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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