A monopoly with pollution emissions
Journal of Environmental Planning and Management, 2012, vol. 55, issue 6, 705-711
This study focused on pollution emissions. It considered a monopoly industry, and the monopolist's pollution emissions were addressed. The equilibrium price, social welfare and the monopolist's profit were all characterised. The theoretical conclusion was confirmed that there should be a special type of emissions tax. Social welfare and the monopolist's profit both monotonically increased, with increases in the maximum acceptable amount of pollution emitted. The quantity of the products was higher than that at the social optimum. Strict policies can efficiently reduce waste emissions, the quantity of products and social welfare.
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