Environmental Investments in Mixed vs Private Oligopoly: What are the Implications of Privatization?

Maria Jose Gil-Molto () and Dimitrios Varvarigos ()
Authors registered in the RePEc Author Service: Maria Jose Gil Molto

No 14/15, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: We compare economic and environmental outcomes under mixed and private oligopolies, in order to examine the effects of privatization when firms invest in abatement and emissions are taxed. We show that the number of competing firms in the market is an important factor in the determination of these effects. While privatization often involves a welfare trade-off, in the sense that higher (lower) output production implies higher (lower) pollution, there are also circumstances where it leads to both lower output and higher emissions simultaneously. Our results also indicate that privatization tends be associated with reductions in social welfare.

Keywords: Privatization; Pollution; Abatement; Mixed Oligopoly (search for similar items in EconPapers)
JEL-codes: L22 L32 Q52 (search for similar items in EconPapers)
Date: 2014-11
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Working Paper: Environmental Investments in Mixed vs Private Oligopoly: What are the Implications of Privatization? (2014)
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