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Emission reduction technology sharing with environmental tax under multiple oligopolies

Author

Listed:
  • Junlong Chen

    (Northeastern University
    Northeastern University at Qinhuangdao)

  • Chaoqun Sun

    (Northeastern University
    Northeastern University at Qinhuangdao)

  • Yiyi Shen

    (Northeastern University at Qinhuangdao)

  • Jiali Liu

    (Jilin University
    Jilin University)

Abstract

This study constructs a Cournot model with multiple enterprises considering the environmental tax, emission reduction technology research and development (R&D), and technology sharing. First, the solution of R&D and sharing boundaries of emission reduction technology are presented. Next, the effects of technology R&D, technology sharing, and environmental tax rates are analyzed. We also reveal the quantitative boundaries of enterprises participating in technology-sharing. The study finds that enterprise decision-making on emission reduction technology R&D and sharing is affected by factors such as the environmental tax rate, R&D cost, and technology sharing fee. Technology R&D and sharing can increase enterprise profits but reduce consumer surplus. Appropriate environmental tax policies contribute to the improvement of social welfare. Technology R&D helps reduce environmental damage and technology sharing can also achieve this under the influence of various factors such as environmental tax. Environmental tax rates affect consumers, enterprises, and social welfare. Consequently, an optimal tax rate is introduced that maximizes social welfare. Excessive environmental tax rates inevitably damage environmental and social welfare. An optimal number of shared enterprises exist in an enterprise’s competition process.

Suggested Citation

  • Junlong Chen & Chaoqun Sun & Yiyi Shen & Jiali Liu, 2024. "Emission reduction technology sharing with environmental tax under multiple oligopolies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(1), pages 127-155, January.
  • Handle: RePEc:spr:endesu:v:26:y:2024:i:1:d:10.1007_s10668-022-02782-w
    DOI: 10.1007/s10668-022-02782-w
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    References listed on IDEAS

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    More about this item

    Keywords

    Emission reduction; Environmental tax; Multiple oligopolies; Technology sharing;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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