Production externality and productivity of labor

Juan Bárcena-Ruiz

Hacienda Pública Española / Review of Public Economics, 2011, vol. 196, issue 1, 65-78

Abstract: In this paper we consider two imperfectly competitive industries, with the polluting emissions from one industry harming the productivity of labor in the other. The polluting industry has to pay an environmental tax chosen by the government. In this framework, we analyze how the different organizational structure adopted by workers affect the environmental tax set by the government, total pollution emissions from the polluting industry and the productivity of workers in the industry that suffers the externality. We obtain that this depends on the degree to which pollution emissions from the polluting industry affects the marginal product of labor in the other industry.

Keywords: Production externality; productivity of labor; environmental taxes; imperfect competition; unionized labor. (search for similar items in EconPapers)
JEL-codes: D62 J51 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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