The environmental effects of ambient charges in a partially cooperating duopoly

Kazuhiro Ohnishi

MPRA Paper from University Library of Munich, Germany

Abstract: This paper explores a Cournot duopoly model involving two firms that engage in partial cooperation. The paper reevaluates the effectiveness of using ambient charges as a policy tool to control industrial nonpoint-source pollution. The findings suggest that when the level of cooperation between the firms is relatively low, increasing ambient charges can serve as an effective means to reduce pollution. By analyzing the strategic interactions between the firms, the paper highlights how limited cooperation influences the success of environmental policies. These insights contribute to a better understanding of regulatory approaches in industries where firms have interdependent pollution outcomes.

Keywords: Ambient charge; Cournot duopoly; Environmental regulation; partially cooperating firms; Pollution (search for similar items in EconPapers)
JEL-codes: D21 L13 L20 (search for similar items in EconPapers)
Date: 2026-03-01
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:128241

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