Environmental awareness, environmental R&D spillovers, and privatization in a mixed duopoly

Akira Yakita and Donglin Zhang
Additional contact information
Donglin Zhang: Nanzan University

Environmental Economics and Policy Studies, 2022, vol. 24, issue 3, No 6, 447-458

Abstract: Abstract Assuming that consumption goods are differentiated in terms of environmental friendliness in a mixed duopolistic market, we present an analysis of public firm privatization effects on the environment and social welfare. The public firm maximizes the weighted average of its profit and social welfare. The private firm maximizes its profit. Consumers are aware of the environmental friendliness of goods. We demonstrate that an increase in the degree of public firm privatization lowers its environmental R&D investment and output. The decreased public firm’s R&D in turn lowers the private firm’s R&D investment through spillovers. The reduction of R&D investment by both firms decreases the environmental friendliness of these goods. Consumers consequently decrease their consumption of these goods. Therefore, if consumers exhibit environmental friendliness, then an increased degree of privatization might be socially undesirable.

Keywords: Environmental awareness; Environmental R&D investment; Mixed duopoly; Privatization; R&D spillovers (search for similar items in EconPapers)
JEL-codes: D43 L13 L33 Q50 Q58 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1007/s10018-021-00330-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:envpol:v:24:y:2022:i:3:d:10.1007_s10018-021-00330-w

Ordering information: This journal article can be ordered from
http://www.springer. ... mental/journal/10018

DOI: 10.1007/s10018-021-00330-w

Access Statistics for this article

Environmental Economics and Policy Studies is currently edited by Ken-Ichi Akao

More articles in Environmental Economics and Policy Studies from Springer, Society for Environmental Economics and Policy Studies - SEEPS Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().