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| Author: | Kurtyka, O. Mahenc, P. |
| Title: | The switching effect of environmental taxation within Bertrand differentiated duopoly |
| Journal: | Journal of Environmental Economics and Management
2011 : SEP, VOL. 62:2, p. 267-277 |
| Index terms: | duopoly environmental economics taxation green consumers pollution externalities |
| Language: | eng |
| Abstract: | We examine second-best optimal taxation of the polluting variety of a product in a Bertrand duopoly with differentiated assortments. The discussion provides novel insight on a useful social function of environmental regulation. In addition to internalizing the environmental externality, the taxation of the polluting variety improves the matching of consumers with product varieties, and hence establishes a socially desirable business switching between the differentiated varieties. |
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