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Effects of Transboundary Stock Pollution on the Mode of International Competition

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  • Kenji Fujiwara
  • Norimichi Matsueda

Abstract

This paper looks into potential determinants of the mode of international competition in a polluting good market by focusing on a strategic interaction between two environmentally concerned governments. From the analysis of our model based on a simple international duopoly model with transboundary stock pollution, we show how the resulting form of international competition depends on the magnitudes of the transboundary impacts of pollutant emissions and the decay rates of pollutant stocks in respective countries.

Suggested Citation

  • Kenji Fujiwara & Norimichi Matsueda, 2010. "Effects of Transboundary Stock Pollution on the Mode of International Competition," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 17(2), pages 175-191.
    • Handle: RePEc:taf:raaexx:v:17:y:2010:i:2:p:175-191
    DOI: 10.1080/16081625.2010.9720859
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    References listed on IDEAS

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    1. Barrett, Scott, 1994. "Strategic environmental policy and intrenational trade," Journal of Public Economics, Elsevier, vol. 54(3), pages 325-338, July.
    2. Kennedy Peter W., 1994. "Equilibrium Pollution Taxes in Open Economies with Imperfect Competition," Journal of Environmental Economics and Management, Elsevier, vol. 27(1), pages 49-63, July.
    3. Ulph, Alistair, 1996. "Environmental Policy and International Trade when Governments and Producers Act Strategically," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 265-281, May.
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