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Does Competition Prevent Industrial Pollution? Evidence from a Panel Threshold Model

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  • Polemis, Michael
  • Stengos, Thanasis

Abstract

The scope of this paper is to assess the impact of competition on industrial toxic pollution by using for the first time, a panel threshold model which allows evaluating the main drivers of toxic releases under two different market regimes. The empirical analysis is based on a micro level panel data set over the five year-period 1987-2012. We show that this relationship is statistically significant and robust above and below the threshold, even after accounting for alternative specifications of market concentration. Finally, we unmask an inverted “V-shaped” relationship between market concentration and industrial pollution.

Suggested Citation

  • Polemis, Michael & Stengos, Thanasis, 2017. "Does Competition Prevent Industrial Pollution? Evidence from a Panel Threshold Model," MPRA Paper 85177, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:85177
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    Cited by:

    1. repec:spr:lsprsc:v:11:y:2018:i:1:d:10.1007_s12076-017-0195-9 is not listed on IDEAS
    2. repec:eee:ecolet:v:164:y:2018:i:c:p:1-4 is not listed on IDEAS
    3. Halkos, George & Polemis, Michael, 2018. "Does market structure trigger efficiency? Evidence for the USA before and after the financial crisis," MPRA Paper 84511, University Library of Munich, Germany.
    4. Chen, Chaoyi & Polemis, Michael & Stengos, Thanasis, 2018. "On the Examination of Competition in the Petroleum Industry: A Pooled Panel Threshold Analysis," MPRA Paper 89671, University Library of Munich, Germany.
    5. repec:eee:ejores:v:276:y:2019:i:3:p:1104-1118 is not listed on IDEAS
    6. repec:rim:rimwps:24-08 is not listed on IDEAS
    7. repec:eee:ejores:v:276:y:2019:i:3:p:929-946 is not listed on IDEAS

    More about this item

    Keywords

    Competition; Concentration; Threshold; Non-linearities; Inverted “V-shaped”;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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