Kurtyka, Oliwia and Mahenc, Philippe (2011) The switching effect of environmental taxation within Bertrand differentiated duopoly. Journal of Environmental Economics and Management, 62 (2). 267–277.Full text not available from this repository.
We investigate second-best optimal taxation of the polluting variety of a product in a Bertrand duopoly with differentiated varieties. The analysis provides novel insight on a useful social function of environmental regulation. Besides internalizing the environmental externality, the taxation of the polluting variety improves the matching of consumers and product varieties, and so creates a socially desirable business switching between the differentiated varieties.
|Journal or Publication Title:||Journal of Environmental Economics and Management|
|Uncontrolled Keywords:||Bertrand competition ; Differentiated products ; Environmental taxation ; Green demand ; Ramsey rule|
|Departments:||Lancaster University Management School > Economics|
|Deposited On:||24 Nov 2011 15:24|
|Last Modified:||26 Jul 2012 19:51|
Actions (login required)