Environmental policies in a differentiated oligopoly revisited

Kenji Fujiwara ()

Resource and Energy Economics, 2009, vol. 31, issue 3, 239-247

Abstract: Constructing a model of polluting oligopoly with product differentiation, we consider how product differentiation, together with the presence and absence of free entry, affects optimal pollution tax/subsidy policies. The sign of the short- and long-run optimal pollution taxes are highly sensitive to the parameter measuring product differentiation as well as the presence of free entry. How they are affected by a change in product differentiation, which is not addressed in the existing literature, is also made clear.

Keywords: Environmental; policy; Oligopoly; Product; differentiation; Free; entry; and; exit (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (37)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:31:y:2009:i:3:p:239-247

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