search query: @author Thisse, J-F. / total: 15
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Author: | Cremer, H. Thisse, J-F. |
Title: | On the taxation of polluting products in a differentiated industry |
Journal: | European Economic Review
1999 : MAR, VOL. 43:3, p. 575-594 |
Index terms: | INDUSTRIES ENVIRONMENTAL QUALITY IMPERFECT COMPETITION MARKETS TAXATION MODELS |
Language: | eng |
Abstract: | The paper studies the provision of environmental quality in an imperfectly competitive market. It uses a vertical differentiation model in which the free entry equilibrium results in an under-provision of quality. The following main results are obtained: (i) a commodity tax may have a significant impact on the market structure, (ii) a commodity tax may be welfare-improving through its impact on market structure, (iii) commodity tax may bring about an equilibrium that is arbitrarily close to a Pareto-efficient allocation. |
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