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Pollution from Cournot duopoly industry and the effect of ambient charges

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  • Hideki Sato

Abstract

From the perspective of oligopoly theory, this paper clarifies the effectiveness of ambient charges as a policy measure for reducing industrial non-point source pollution. Ganguli and Raju argue that ambient charges have perverse effects in the context of Bertrand competition. By contrast, this paper examines the effects of ambient charges in the context of Cournot competition, clarifying that they are an effective policy measure. The result presented here is consistent with previous results in the field of experimental economics.

Suggested Citation

  • Hideki Sato, 2017. "Pollution from Cournot duopoly industry and the effect of ambient charges," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 6(3), pages 305-308, July.
    • Handle: RePEc:taf:teepxx:v:6:y:2017:i:3:p:305-308
    DOI: 10.1080/21606544.2017.1296381
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    References listed on IDEAS

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    1. Spraggon, John, 2002. "Exogenous targeting instruments as a solution to group moral hazards," Journal of Public Economics, Elsevier, vol. 84(3), pages 427-456, June.
    2. Gregory L. Poe & William D. Schulze & Kathleen Segerson & Jordan F. Suter & Christian A. Vossler, 2004. "Exploring the Performance of Ambient-Based Policy Instruments When Nonpoint Source Polluters Can Cooperate," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1203-1210.
    3. Segerson, Kathleen, 1988. "Uncertainty and incentives for nonpoint pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 87-98, March.
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    Citations

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    Cited by:

    1. Ohnishi, Kazuhiro, 2024. "Pollution, partial privatization and the effect of ambient charges: price competition," MPRA Paper 120531, University Library of Munich, Germany.
    2. Ohnishi, Kazuhiro, 2021. "The environmental effect of ambient charges in mixed triopoly with diverse firm objectives," MPRA Paper 108521, University Library of Munich, Germany.
    3. Akio Matsumoto & Ferenc Szidarovszky, 2021. "Controlling non-point source pollution in Cournot oligopolies with hyperbolic demand," SN Business & Economics, Springer, vol. 1(2), pages 1-15, February.
    4. Ahmad Naimzada & Marina Pireddu, 2023. "Dynamic approaches for the evaluation of the environmental policy efficacy in a nonlinear Cournot duopoly with differentiated goods and emission charges," Working Papers 517, University of Milano-Bicocca, Department of Economics.
    5. Ohnishi, Kazuhiro, 2021. "Pollution, partial privatization and the effect of ambient charges," MPRA Paper 106319, University Library of Munich, Germany.
    6. Ohnishi, Kazuhiro, 2021. "Pollution, partial privatization and the effect of ambient charges," MPRA Paper 109592, University Library of Munich, Germany, revised 04 Sep 2021.

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