Indrani, Roy Chowdhury (2006): Mergers, pollution and environmental policy.
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We examine the impact of abatement taxes on the pollution level in a duopoly framework with endogenous market structure. We demonstrate that an increase in abatement taxes could trigger a regime-switch from Cournot competition to merger, as well as from merger to Cournot competition. The nature of this switch is critically dependent on the nature of merger costs. However, in either case, this may cause the pollution level to increase.
|Item Type:||MPRA Paper|
|Original Title:||Mergers, pollution and environmental policy|
|Keywords:||Mergers, pollution, abatement tax, endogenous market structure|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products
|Depositing User:||Roy Chowdhury|
|Date Deposited:||24. Mar 2008 00:23|
|Last Modified:||07. Jan 2014 19:03|
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