Kato, Kazuhiko (2010): Partial privatization and environmental policies.
Download (117kB) | Preview
The paper compares emission tax and emission quota in a mixed duopoly when the partial privatization of a public firm is allowed. Furthermore, we consider the following two cases with regard to the objective of the public firm: (1) the public firm maximizes the weighted average of its profit and wefare and (2) the public firm maximizes the weighted average of its profit and the sum of consumer surplus and producer surplus. We show that emission tax is welfare superior to emission quota regardless of the degree of partial privatization in (1), whereas the former is inferior to the latter when the degree of partial privatization is high in (2).
|Item Type:||MPRA Paper|
|Original Title:||Partial privatization and environmental policies|
|Keywords:||environment; mixed duopoly; quota; tax|
|Subjects:||L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L33 - Comparison of Public and Private Enterprises and Nonprofit Institutions; Privatization; Contracting Out
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q58 - Government Policy
|Depositing User:||Kazuhiko Kato|
|Date Deposited:||23. Dec 2010 22:12|
|Last Modified:||25. Feb 2013 04:50|
Barcena-Ruiz, Juan C., Garzon, M. Begona, 2006. Mixed oligopoly and environmental policy. Spanish Economic Review 8, 139-160.
Beladi, Hamid, Chao, Chi-Chur, 2006. Does privatization improve the environment? Economics Letters 93, 343-347.
Bos, D., 1991. Privatization: a theoretical treatment. Clarendon Press, Oxford.
Cato, Susumu, 2008. Privatization and the environment. Economics Bulletin 12, 1-10.
Kato, Kazuhiko, 2006. Can allowing to trade permits enhance welfare in mixed oligopoly? Journal of Economics 88, 263-283.
Kato, Kazuhiko, 2010. Emission quota versus emission tax in a mixed duopoly. Forthcoming in Environmental Economics and Policy Studies.
Naito, Tohru, Ogawa, Hikaru, 2009. Direct versus indirect environmental regulation in a partially privatized mixed duopoly. Environmental Economics and Policy Studies 10, 87-100.
Ohori, Shuichi, 2006a. Optimal environmental tax and level of privatization in an international duopoly. Journal of Regulatory Economics 29, 225-233.
Ohori, Shuichi, 2006b. Trade liberalization, consumption externalities and the environment: a mixed duopoly approach. Economics Bulletin 17, 1-9.
Wang, Leonard F. S., Wang, Jean, 2009. Environmental taxes in a differentiated mixed duopoly. Economic Systems 33, 389-396.
Wang, Leonard F. S., Wang, Jean, Zhao, Lihong, 2009. Privatization and the environment in a mixed duopoly with pollution abatement. Economics Bulletin 29, 3112-3119.