Environmental Regulation and Horizontal Mergers in the Eco-industry
Joan Canton (),
Maia David and
No 2008.46, Working Papers from Fondazione Eni Enrico Mattei
This paper considers the environmental policy and welfare implications of a merger between environment firms (i.e., firms managing environmental resources or supplying pollution abatement goods and services). The traditional analysis of mergers in Cournot oligopolies is extended in two ways. First, we show how environmental policy affects the incentives of environment firms to merge. Second, we stress that mergers in the eco-industry impact welfare beyond what is observed in other sectors, due to an extra effect on pollution abatement efforts; this might lead to disagreements between an anti-trust agency seeking to limit market concentration which can be detrimental to consumer surplus and a benevolent regulator who maximizes total welfare.
Keywords: Eco-Industry; Environmental Policy; Horizontal Mergers (search for similar items in EconPapers)
JEL-codes: D62 H23 L11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-env, nep-ind and nep-reg
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Journal Article: Environmental Regulation and Horizontal Mergers in the Eco-industry (2012)
Working Paper: Environmental regulation and horizontal mergers in the eco-industry (2008)
Working Paper: Environmental Regulation and Horizontal Mergers in the Eco-industry (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2008.46
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