Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/512
Appears in Collections:Economics Working Papers
Peer Review Status: Unrefereed
Title: Environmental Taxes and Industry Monopolization
Authors: Schoonbeek, Lambert
de, Vries Frans
Contact Email: f.p.devries@stir.ac.uk
Citation: Schoonbeek L & de Vries F (2008) Environmental Taxes and Industry Monopolization. Stirling Economics Discussion Paper, 2008-19.
Keywords: taxes
market structure
environmental pollution
monopoly
JEL Code(s): H23
L12
Q58
Issue Date: Sep-2008
Series/Report no.: Stirling Economics Discussion Paper, 2008-19
Abstract: This paper considers a market with an incumbent monopolistic firm and a potential entrant. Production by both firms causes polluting emissions. The government selects a tax per unit emission by maximizing social welfare. The size of the tax rate affects whether or not the potential entrant enters the market. We identify the conditions that create a market structure where the preferences of the government and the incumbent firm coincide. Interestingly, there are cases where both the government and incumbent firm prefer a monopoly. Hence, the government might induce profitable monopolization by using a socially optimal tax policy instrument.
Type: Working or Discussion Paper
URI: http://hdl.handle.net/1893/512
Affiliation: University of Groningen
Economics

Files in This Item:
File Description SizeFormat 
SEDP-2008-19-Schoonbeek-de-Vries.pdf236.86 kBAdobe PDFView/Open


This item is protected by original copyright



Items in the Repository are protected by copyright, with all rights reserved, unless otherwise indicated.

If you believe that any material held in STORRE infringes copyright, please contact library@stir.ac.uk providing details and we will remove the Work from public display in STORRE and investigate your claim.