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Author:Pflüger, M.
Title:Ecological dumping under monopolistic competition
Journal:Scandinavian Journal of Economics
2001 : VOL. 103:4, p. 689-706
Index terms:COMPETITION
DUMPING
ECOLOGY
MONOPOLY
POLLUTION CHARGES
Language:eng
Abstract:The competitive choice of emission taxes by two governments is analysed in a model of monopolistic competition with capital mobility where pollution externalities are regional. Assuming that governments have no other policy instrument apart from emission taxes at their disposal, the author shows that governments choose inefficiently low (high) taxes if the importance of emissions in production is small (large) relative to transport costs and the mark-up.
SCIMA record nr: 232046
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