Taxes versus standards under cross-ownership

Juan Bárcena-Ruiz and María Luz Campo

Resource and Energy Economics, 2017, vol. 50, issue C, 36-50

Abstract: This paper analyzes the effect of passive investment in rival firms on the setting of uniform taxes and uniform absolute emission standards by the government. When firms are equal and there is no cross-ownership, standards and taxes are equivalent and generate the same social welfare. However, under cross-ownership that result does not hold since cross-ownership reduces market competition, which has a different effect on taxes and standards. In general, we find that when cross-ownership is low social welfare is greater with a tax, and when it is high social welfare is greater with a standard.

Keywords: Q58; L13; H2; Environmental Tax; Environmental Standard; Cross-Ownership; Imperfect Competition (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0928765517301938
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:50:y:2017:i:c:p:36-50

DOI: 10.1016/j.reseneeco.2017.06.006

Access Statistics for this article

Resource and Energy Economics is currently edited by J. F. Shogren and S. Smulders

More articles in Resource and Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().