Global Emission Taxes and Port Privatization Policies under International Competition

Feng Pian, Lili Xu (), Yuyan Chen and Sang-Ho Lee ()
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Feng Pian: Department of Economics and Trade, Dalian Maritime University, 1 Linghai Road, Dalian 116026, China
Yuyan Chen: Department of Economics and Trade, Dalian Maritime University, 1 Linghai Road, Dalian 116026, China

Sustainability, 2020, vol. 12, issue 16, 1-25

Abstract: This study considers two asymmetric ports under international competition in which each country has a hub port and a private manufacturer and investigates strategic interactions between port privatization and emission tax policies. We emphasize the key role of the relative market size between the two countries and show that in a privatization choice game, port privatization is a dominant strategy in a larger country, but it will be chosen by a smaller country only if its relative market size is not so small. We also show that the coordination of global emission taxes before privatization choices can induce the equilibrium of the game to be globally optimal when the emission tax is relatively high. This finding provides an important policy implication on the climate change that coordinated global environmental policy is imperatively required in the port privatization policy.

Keywords: port privatization; emission taxes; international competition; emission tax coordination (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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