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Competitiveness and environmental policies in strategic environmental policy models

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  • Stähler, Frank

Abstract

This paper discusses the issue of competitiveness and environmental regulation from the viewpoint of strategic environmental policy models. It demonstrates that the incentive for strategic policies is determined only by the reaction of the opponent. Furthermore, it shows that the conditions under which relatively strict environmental policies may lead to an increase in the profits of the domestic industry are rather artificial. The result depends in a rather complex way on the type of competition and several effects of research and development or environmental quality specification, and on the assumption that a unilateral policy is possible.

Suggested Citation

  • Stähler, Frank, 1998. "Competitiveness and environmental policies in strategic environmental policy models," Kiel Working Papers 858, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:858
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    9. Bulow, Jeremy I & Geanakoplos, John D & Klemperer, Paul D, 1985. "Multimarket Oligopoly: Strategic Substitutes and Complements," Journal of Political Economy, University of Chicago Press, vol. 93(3), pages 488-511, June.
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    Cited by:

    1. Stähler, Frank, 1998. "Competitiveness and environmental policies in a dynamic model," Kiel Working Papers 859, Kiel Institute for the World Economy (IfW Kiel).

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    More about this item

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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