Relocation in presence of polluting and heterogeneous technologies

Délocalisations dans un contexte d’échanges internationaux et de concurrence imparfaite

Julie Ing () and Jean-Philippe Nicolaï ()
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Julie Ing: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique
Jean-Philippe Nicolaï: GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes

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Abstract: This paper develops a simple partial equilibrium model with two regions, North and South, to fathom the effects of firms' relocation in a context of international and imperfect competition. Two different production technologies are considered, a relatively clean technology and a dirty one, and the effects of relocation according to the kind of technology used by the relocated firms are determined. We consider one immobile dirty firm located in the South and two mobile firms located in the North: one relatively clean and one dirty firm. This paper demonstrates that the offshoring of a dirty firm as compared to the offshoring of a clean firm is worse for the environment, better for northern consumers, and better for the domestic profits.

Keywords: Relocation; Emissions tax; Trade of polluting goods; Dirty and clean production technologies; Imperfect competition; Délocalisation; Taxe sur les émissions; Commerce de biens polluants; Technologies de production sales et propres; Concurrence imparfaite (search for similar items in EconPapers)
Date: 2023
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Published in Revue Economique, 2023, 74 (6), pp.999-1026. ⟨10.3917/reco.746.0999⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04721473

DOI: 10.3917/reco.746.0999

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