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Privatization and the Environment in a Mixed Duopoly with Pollution Abatement

Author

Listed:
  • Leonard F. S. Wang

    (Department of Applied Economics, National University of Kaoshiung)

  • Ya-chin Wang

    (Department of Finance and Banking, Kun Shan University)

  • Lihong Zhao

    (China Huanqiu Contracting & Engineering Corporation)

Abstract
The purpose of this note is to re-examine whether privatization improves the environment or not in a mixed duopolistic model. In our model, both firms adopt pollution abatement technologies in response to the environmental tax imposed by the government. It is shown that privatization unambiguously reduces the pollution levels of firms. Namely, privatization does improve the environment. Moreover, by implementing partial-privatization policy, social welfare can be enhanced.

Suggested Citation

  • Leonard F. S. Wang & Ya-chin Wang & Lihong Zhao, 2009. "Privatization and the Environment in a Mixed Duopoly with Pollution Abatement," Economics Bulletin, AccessEcon, vol. 29(4), pages 3112-3119.
    • Handle: RePEc:ebl:ecbull:eb-09-00590
    as

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    References listed on IDEAS

    as
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    6. Kazuhiko Kato, 2006. "Can Allowing to Trade Permits Enhance Welfare in Mixed Oligopoly?," Journal of Economics, Springer, vol. 88(3), pages 263-283, September.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Environmental Taxes; Mixed Oligopoly: Privatization;

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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