IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v44y2023i6p3016-3025.html
   My bibliography  Save this article

Environmental tax policy and optimal privatization in a polluting mixed duopoly

Author

Listed:
  • Mingqing Xing
  • Tingting Tan
  • Xuejun Ma
  • Xia Wang

Abstract

We investigate the optimal privatization policy in a polluting mixed duopoly when environmental taxes are used. Firms adopt clean technology to reduce emissions. We consider the situation of exogenous tax and find that (i) partial privatization is always optimal under low marginal damage, while full nationalization may be optimal under high marginal damage; (ii) the optimal privatization level always increases with tax rate under low marginal damage, while it may decrease with tax rate under high marginal damage. As an extension, we consider the endogenous tax situation and show that full nationalization may be optimal under sufficiently high marginal damage.

Suggested Citation

  • Mingqing Xing & Tingting Tan & Xuejun Ma & Xia Wang, 2023. "Environmental tax policy and optimal privatization in a polluting mixed duopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(6), pages 3016-3025, September.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:6:p:3016-3025
    DOI: 10.1002/mde.3860
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3860
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.3860?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
    ---><---

    More about this item

    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:wly:mgtdec:v:44:y:2023:i:6:p:3016-3025. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.