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The switching effect of environmental taxation within Bertrand differentiated duopoly

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. ISSN 0095-0696

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Abstract

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.

Item Type: Article
Journal or Publication Title: Journal of Environmental Economics and Management
Uncontrolled Keywords: Bertrand competition ; Differentiated products ; Environmental taxation ; Green demand ; Ramsey rule
Subjects: UNSPECIFIED
Departments: Lancaster University Management School > Economics
ID Code: 51450
Deposited By: ep_importer_pure
Deposited On: 24 Nov 2011 15:24
Refereed?: Yes
Published?: Published
Last Modified: 23 Oct 2014 11:57
Identification Number:
URI: http://eprints.lancs.ac.uk/id/eprint/51450

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