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Environmental Protection without Loss of International Competitiveness

Lahiri, S and Symeonidis, G (2017) 'Environmental Protection without Loss of International Competitiveness.' Journal of Public Economic Theory, 19 (5). pp. 921-936. ISSN 1097-3923

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We develop a two-country Cournot oligopoly model with product differentiation across countries and production-generated pollution. The abatement of pollution by the firms in response to emission taxes is endogenous, and the number of firms can be fixed or there may be free entry and exit of firms in both countries. We propose particular unilateral and multilateral piecemeal policy reforms of emission taxes and production subsidies such that domestic industries will not suffer any loss of international competitiveness (defined in terms of either market share or profits), emission levels will be lower and welfare could be higher in both countries.

Item Type: Article
Uncontrolled Keywords: Emission tax; production subsidy; competitiveness; cross-border pollution
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Economics, Department of
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 22 Jun 2017 12:34
Last Modified: 18 Aug 2022 11:36

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