Kato, Kazuhiko (2010): Partial privatization and unidirectional transboundary pollution.
Download (162Kb) | Preview
We determine whether or not a local regional government should privatize its local public firm in a mixed duopoly when it faces the problem of unidirectional transboundary pollution. We consider two regions in an economy, one located upstream and the other, downstream. Where both the local public firm owned by the local government upstream and the private firm are located and compete upstream, we analyze two cases: (h) the private firm is owned by private investors upstream and (f) it is owned by private investors downstream. A comparison of the two cases presents the following results. Partial privatization is desirable for local welfare upstream in (h), but it is not always desirable in (f). In both (h) and (f), it is desirable for local welfare downstream and for the overall welfare of the economy when the degree of environmental damage and the fraction of transboundary pollution upstream are low. However, when they are high, the results change for (h) and (f).
|Item Type:||MPRA Paper|
|Original Title:||Partial privatization and unidirectional transboundary pollution|
|Keywords:||Mixed Duopoly; Privatization; Transboundary pollution|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L33 - Comparison of Public and Private Enterprises and Nonprofit Institutions; Privatization; Contracting Out
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Production Analysis, and Firm Location > R38 - Government Policy; Regulatory Policy
|Depositing User:||Kazuhiko Kato|
|Date Deposited:||02. Dec 2010 11:28|
|Last Modified:||16. Feb 2013 02:00|
B´arcena-Ruiz, J. C. and Garz´on M. B., (2006), “Mixed oligopoly and environmental policy”, Spanish Economic Review, 8: 139-160.
Beladi, H. and Chao, C.-C., (2006), “Does privatization improve the environment?”, Economics Letters, 93: 343-347.
B¨os, D., (1991), Privatization: a theoretical treatment, Clarendon Press, Oxford.
Cato, S., (2008), “Privatization and the environment”, Economics Bulletin, 12: 1-10.
Fern´andez, J. A. and Fern´andez-Stembridge, L., (2007), China’s state-owned enterprise reforms – an industrial and CEO approarch, Routledge.
Fjell, K. and Heywood, S., (2004), “Mixed oligopoly, subsidization and the order of firm’s moves: the relevance of privatization”, Economics Letters, 83: 411-416.
Fjell, K. and Pal, D., (1996), “A mixed oligopoly in the presence of foreign private firms”, Canadian Journal of Economics, 29: 737-743.
Ichikawa, Y. and Fujita, S., (1995), “An analysis of wet deposition of sulfate using a trajectory model for East Asia”, Water, Air, and Soil Pollution, 85: 1927-1932.
Kato, K., (2006), “Can allowing to trade permits enhance welfare in mixed oligopoly?”, Journal of Economics, 88: 263-283.
Kato, K., (2010), “Emission Quota versus Emission Tax in a Mixed Duopoly”, forthcoming in Environmental Economics and Policy Studies.
Lu, Y., (2006), “Endogenous timing in a mixed oligopoly with foreign competitors: The linear demand case”, Journal of Economics, 88: 49-68.
Matsumura, T. (1998), “Partial privatization in mixed duopoly”, Journal of Public Economics, 70: 473-483.
Matsumura, T., (2003), “Stackelberg mixed duopoly with a foreign competitor”, Bulletin of Economic Research, 55: 275-287.
Nagase, Y. and Silva, E. C. D., (2007), “Acid rain in China and Japan: a game-theoretic analysis”, Regional Science and Urban Economics, 37: 100-120.
Naito, T. and Ogawa, H., (2009), “Direct versus indirect environmental regulation in a partially privatized mixed duopoly”, Environmental Economics and Policy Studies, 10, 87-100.
Ohara, T., Uno, I., Wakamatsu, S., and Murano, K., (2001), “Numerical simulation of the springtime transboundary air pollution in East Asia”, Water, Air, and Soil Pollution, 130: 295-300.
Ohori, S., (2006a), “Optimal environmental tax and level of privatization in an international duopoly”, Journal of Regulatory Economics, 29: 225-233.
Ohori, S., (2006b), “Trade liberalization, consumption externalities and the environment: a mixed duopoly approach”, Economics Bulletin, 17: 1-9.
Wang, L. F.S. and Wang, J., (2009), “Environmental taxes in a differentiated mixed duopoly”, Economic Systems, 33: 389 – 396.
Wang, L. F.S., Wang, Y., and Zhao, L.,(2009), “Privatization and the Environment in a Mixed Duopoly with Pollution Abatement”, Economics Bulletin, 29: 3112–3119.