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The influence of transportation costs and environmental damage on social welfare under asymmetric multi-market mixed oligopoly

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  • Kawasaki, Akio
  • Naito, Tohru

Abstract

This study investigates how transportation costs and environmental damage affect social welfare and the optimal degree of nationalization by assuming asymmetric mixed oligopoly markets. It assumes that both transportation costs and environmental damage are incurred when products are transported regionally. We find that even if transportation costs or environmental damage decrease, social welfare does not always improve under full nationalization. Next, this study examines how transportation costs and environmental damage affect the optimal degree of nationalization. We find that the optimal degree of nationalization does not always increase with transportation costs and environmental damage. Explaining how transportation costs and environmental damage affect socially preferable privatization policy is important because previous studies on partial privatization have not discussed their influence.

Suggested Citation

  • Kawasaki, Akio & Naito, Tohru, 2024. "The influence of transportation costs and environmental damage on social welfare under asymmetric multi-market mixed oligopoly," Innovation and Green Development, Elsevier, vol. 3(3).
    • Handle: RePEc:eee:ingrde:v:3:y:2024:i:3:s2949753124000146
    DOI: 10.1016/j.igd.2024.100137
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    More about this item

    Keywords

    Environmental damage; Mixed duopoly; Transportation costs; Multi-regional markets;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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