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 0095-0696Full 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:||03 Nov 2015 15:15|
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