Delegation and Emission Tax in a Differentiated Oligopoly

Published By: IGIDR on eSS | Published Date: October, 04 , 2009

How product differentiation as well as strategic managerial delegation affects optimal emission tax rate, environmental damage and social welfare, under alternative modes of product market competition is examined. It shows that, under pure profit maximization, the (positive) optimal emission tax rate is not necessarily decreasing in degree of product differentiation, irrespective of the mode of competition.

Author(s): Rupayan Pal | Posted on: Nov 04, 2009 | Views(1301) | Download (618)


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