IDEAS home Printed from https://ideas.repec.org/a/kap/atlecj/v38y2010i2p209-216.html
   My bibliography  Save this article

Pollution, Factor Ownerships, and Emission Taxes

Author

Listed:
  • Chorng-Jian Liu
  • Chao-Cheng Mai
  • Fu-Chuan Lai
  • Wen-Chung Guo

Abstract

This paper employs Cournot’s ( 1838 ) model of complementary goods to analyze the optimal emission taxation under joint and independent ownership with pollution. When the marginal damage is small (large), an emission taxation is unnecessary (necessary), because the quantity (environmental) distortion is more serious than the environmental (quantity) distortion. This finding has never been presented in the literature. In contrast to Cournot ( 1838 ), a striking result is that independent ownership may be welfare superior to joint ownership when the marginal damage of externality is large in the absence of governmental intervention. Copyright International Atlantic Economic Society 2010

Suggested Citation

  • Chorng-Jian Liu & Chao-Cheng Mai & Fu-Chuan Lai & Wen-Chung Guo, 2010. "Pollution, Factor Ownerships, and Emission Taxes," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 38(2), pages 209-216, June.
    • Handle: RePEc:kap:atlecj:v:38:y:2010:i:2:p:209-216
    DOI: 10.1007/s11293-010-9213-7
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11293-010-9213-7
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11293-010-9213-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Economides, Nicholas & Salop, Steven C, 1992. "Competition and Integration among Complements, and Network Market Structure," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 105-123, March.
    2. Barnett, A H, 1980. "The Pigouvian Tax Rule under Monopoly," American Economic Review, American Economic Association, vol. 70(5), pages 1037-1041, December.
    3. Martin, Robert E., 1986. "Externality regulation and the monopoly firm," Journal of Public Economics, Elsevier, vol. 29(3), pages 347-362, April.
    4. Rajeev Goel & Edward Hsieh, 1997. "Market structure, pigouvian taxation, and welfare," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 25(2), pages 128-138, June.
    5. Robert E. Kohn, 1986. "The Limitations of Pigouvian Taxes as a Long-Run Remedy for Externalities: Comment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(3), pages 625-630.
    6. Baumol, William J, 1972. "On Taxation and the Control of Externalities," American Economic Review, American Economic Association, vol. 62(3), pages 307-322, June.
    7. Jan K. Brueckner, 2004. "Network Structure and Airline Scheduling," Journal of Industrial Economics, Wiley Blackwell, vol. 52(2), pages 291-312, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wen-Chung Guo & Fu-Chuan Lai & Chorng-Jian Liu & Chao-Cheng Mai, 2012. "Symbiotic Production and Downstream Market Competition," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 40(3), pages 329-340, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dieter Schmidtchen & Jenny Helstroffer & Christian Koboldt, 2021. "Regulatory failure and the polluter pays principle: why regulatory impact assessment dominates the polluter pays principle," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(1), pages 109-144, January.
    2. Rafael Moner Colonques & Ricardo Flores Fillol, 2006. "Strategic Effects Of Airline Alliances," Working Papers. Serie AD 2006-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    3. Requate, Till, 2005. "Environmental Policy under Imperfect Competition: A Survey," Economics Working Papers 2005-12, Christian-Albrechts-University of Kiel, Department of Economics.
    4. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    5. Chen, Xi, 2018. "When does store consolidation lead to higher emissions?," International Journal of Production Economics, Elsevier, vol. 202(C), pages 109-122.
    6. Villena, Mauricio, 2019. "Corporate Social Responsibility and Optimal Pigouvian Taxation," MPRA Paper 100035, University Library of Munich, Germany.
    7. Álvarez-Sanjaime, Óscar & Cantos-Sánchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, Jose J., 2020. "A three-stage competition game in an air transport network under asymmetric valuation of flight frequencies," Economics of Transportation, Elsevier, vol. 21(C).
    8. Richard S. J. Tol, 2021. "Selfish Bureaucrats And Policy Heterogeneity In Nordhaus’ Dice," World Scientific Book Chapters, in: Robert Mendelsohn (ed.), CLIMATE CHANGE ECONOMICS Commemoration of Nobel Prize for William Nordhaus, chapter 6, pages 77-92, World Scientific Publishing Co. Pte. Ltd..
    9. Chaudhuri, Sarbajit, 2015. "Negative Production Externalities and Efficacy of the Pigouvian Tax Policy in a Developing Economy: A Pure Economic Argument," MPRA Paper 63292, University Library of Munich, Germany.
    10. David W. Stewart & Debra L. Scammon, 2016. "Introduction to Special Issue on Consumer Response to Regulation," Journal of the Association for Consumer Research, University of Chicago Press, vol. 1(3), pages 337-340.
    11. Achim I. Czerny & Vincent A.C. van den Berg & Erik T. Verhoef, 2015. "Complementary Alliances with Endogenous Fleets and Load Factors," Tinbergen Institute Discussion Papers 15-134/VIII, Tinbergen Institute.
    12. Strokov, A. & Ternovsky, D. & Potashnikov, V. & Potapova, A., 2020. "Economical evaluation of externalities using partial equilibrium model," Journal of the New Economic Association, New Economic Association, vol. 48(4), pages 113-136.
    13. Czerny, Achim I. & van den Berg, Vincent A.C. & Verhoef, Erik T., 2016. "Carrier collaboration with endogenous fleets and load factors when networks are complementary," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 285-297.
    14. Oestreich, Andreas Marcel, 2017. "On optimal audit mechanisms for environmental taxes," Journal of Environmental Economics and Management, Elsevier, vol. 84(C), pages 62-83.
    15. Fu, Ke & Li, Yanzhi & Mao, Huiqiang & Miao, Zhaowei, 2023. "Firms’ production and green technology strategies: The role of emission asymmetry and carbon taxes," European Journal of Operational Research, Elsevier, vol. 305(3), pages 1100-1112.
    16. Iltae Kim & Sang-Ho Lee, 2002. "Comparison between optimal output tax and ad valorem tax for a polluting oligopolist under demand uncertainty," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 5(1), pages 1-15, March.
    17. Wen-Chung Guo & Fu-Chuan Lai & Chorng-Jian Liu & Chao-Cheng Mai, 2012. "Symbiotic Production and Downstream Market Competition," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 40(3), pages 329-340, September.
    18. Walter, Jason M. & Chang, Yang-Ming, 2020. "Environmental policies and political feasibility: Eco-labels versus emission taxes," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 194-206.
    19. Detzen, Dominic & Jain, Pankaj K. & Likitapiwat, Tanakorn & Rubin, Rose M., 2012. "The impact of low cost airline entry on competition, network expansion, and stock valuations," Journal of Air Transport Management, Elsevier, vol. 18(1), pages 59-63.
    20. Juan Carlos Bárcena‐Ruiz & María Begoña Garzón, 2022. "Environmental policy instruments and ownership of firms," Manchester School, University of Manchester, vol. 90(4), pages 385-408, July.

    More about this item

    Keywords

    Emission taxation; Joint ownership; Independent ownership; Pollution; H23; L10;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:atlecj:v:38:y:2010:i:2:p:209-216. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.