By Yiannis Katsoulacos, Anastasios Xepapadeas (auth.), Carlo Carraro, Yiannis Katsoulacos, Anastasios Xepapadeas (eds.)
One of the crucial tenets of this publication is that governmental guidelines has to be designed take into consideration industry features and environmental phenomena - at the same time. This quantity encompasses a new study attempt of the `Fondazione Eni Enrico Mattei' and explores the theoretical underpinnings of environmental coverage in a sub-optimal global.
themes thought of hyperlink monetary concerns (oligopolistic industry buildings, enterprise heterogeneity, and the strategic habit of governments) to environmental matters (emission abatements, purifier applied sciences, and environmental taxation).
The articles during this quantity have been selected to accomplish a stability among breadth and intensity and have been written through prime specialists within the box. in brief, this ebook is wealthy in coverage implications and increases new concerns and questions for destiny research.
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Extra info for Environmental Policy and Market Structure
One possible implication is that environmental policy may reduce the probability of collusive behaviours in oligopoly. It would be interesting to verify whether these conclusions hold even in the case in which the tax change is such to set the tax rate at the socially optimal level. A positive answer is provided in Carraro and Soubeyran (1994): however, their result is proved for specific utility, emission, and cost functions. A more general analysis could be the subject of further research. Appendix Proof of proposition 1 In order to derive market demand from the representative consumer's optimisation problem, let us consider the indirect utility function V(p,E,R), where p is the market price, E is total polluting emissions, which negatively affect the consumer's utility, and R is the consumer's revenue.
Requate, T. (1992), "Pollution Control under Imperfect Competition: Asymmetric Bertrand Duopoly with Linear Technologies", University of Bielefeld, Institute of Mathematical Economics Working Paper No. 216. M. (1976), "Product Differentiation and Welfare", American Economic Review 66, 407-414. F. (1985), "Effluent Regulation and Long-Run Optimality", Journal of Environmental Economics and Management 12, 103-116. 2. Environmental taxation, market share, and profits in oligopoly CARLO CARRARO! and ANTOINE SOUBEYRAN 2 1 2 Universita di Venezia, Fondazione Mattei, CEPR and GRETA; Universite de Aix-en-Provence and LEQAM 1.
Social welfare W is equal to net social benefits w= f: Naive use of environmental instruments 47 p(Y)dY - C(X) - D(X - Q) - AC(Q) where the first two terms represent the sum of consumers' and producers' rent (Yohe (1981) also includes a commodity in his analysis) and tax revenue drops out. The first-best solution X fb , Qfb has to satisfy two conditions, namely, P(Xfb ) = MC(Xfb ) + MD(Xfb MAC(Qfb) = MD(Xfb - Qfb) - Qfb), where MC, MD, and MAC denote marginal cost, marginal damage, and marginal abatement cost, respectively.