NDLI: Trade liberalization and transboundary pollution in an international mixed duopoly

Content Provider	Springer Nature Link
Author	Chen, Tai Liang Wang, Leonard F. S.
Copyright Year	2010
Abstract	This study envisages the reciprocal markets in a mixed duopoly, in which a public firm located in its home country competes with a private firm located in another country. We examined environmental damage and the effects of trade liberalization on environmental taxes in the mixed duopoly model. In an international mixed duopoly with transboundary pollution, we found that environmental taxes levied by each country with different equity-structure firms are greater or less than the standard Pigouvian level, which depends on cost difference between the public and private firms. In addition, in this reciprocal trade market with transboundary pollution, a bilateral reduction in tariffs is beneficial to the global environment, but its impact on welfare is ambiguous. The larger the market scale and the smaller the cost differential between the public and private firm, the more likely it is that bilateral trade liberalization is only beneficial for the country with the public firm and not for the country with the private firm.
Starting Page	187
Ending Page	200
Page Count	14
File Format	PDF
ISSN	1432847X
Journal	Environmental Economics and Policy Studies
Volume Number	12
Issue Number	4
e-ISSN	1867183X
Language	English
Publisher	Springer Japan
Publisher Date	2010-12-08
Publisher Place	Japan
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Mixed duopoly Trade liberalization Transboundary pollution Environmental tax Social Policy Environmental Economics
Content Type	Text
Resource Type	Article
Subject	Economics and Econometrics Management, Monitoring, Policy and Law

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