Rudy, Colacicco (2016) Environment, Imperfect Competition, and Trade: Insights for Optimal Policy in General Equilibrium. Working Paper. Department of Economics, Finance & Accounting Working Paper N273-16. (Unpublished)
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Abstract
I build a two-country general oligopolistic equilibrium model, in which sectors differ in
emissions and technologies, and pollution can be transboundary. I derive the optimal
bilateral environmental policy for the economy as a whole, for the cases in which the
environmental damage either linearly or quadratically increases in total pollution. The
analysis highlights that the optimal emission tax can even be negative, and bilateral trade
liberalization should be matched with either a rise or a fall in the optimal emission tax.
The moments of the emission distribution and technology distribution across sectors are
fundamental to implement optimal environmental policies.
Item Type: | Monograph (Working Paper) |
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Keywords: | Cournot Competition; Environmental Policy; Emission Tax; General Oligopolistic Equilibrium (GOLE); Trade Liberalization; Transboundary Pollution; |
Academic Unit: | Faculty of Social Sciences > Economics, Finance and Accounting |
Item ID: | 7457 |
Depositing User: | Rudy Colacicco |
Date Deposited: | 22 Sep 2016 13:16 |
Publisher: | Department of Economics, Finance & Accounting Working Paper N273-16 |
URI: | https://mural.maynoothuniversity.ie/id/eprint/7457 |
Use Licence: | This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here |
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