Voluntary Green Commitment and Optimal Privatization Policy in a Mixed Eco-Industry-Reference-Cited by-同舟云学术

Voluntary Green Commitment and Optimal Privatization Policy in a Mixed Eco-Industry

Published:2022-08-01 Issue:2 Volume:13 Page:149-171
ISSN:2154-4611
Container-title:Asian Journal of Law and Economics
language:en
Short-container-title:

Author:

Park Chul-Hi¹^ORCID,Lee Sang-Ho²^ORCID,Nakamura Tamotsu³

Affiliation:

1. Center for Regional Development , Chonnam National University , 77 Yongbong-ro, Bukgu , Gwangju 500-757 , South Korea

2. Graduate School of Economics , Chonnam National University , 77 Yongbong-ro, Bukgu , Gwangju 500-757 , South Korea

3. Graduate School of Economics , Kobe University , 2-1 Rokkodai, Nada-ku , Kobe 657-8501 , Japan

Abstract

Abstract This study investigates the impact of target emissions from polluting firms on the production of green technology and the optimal policy decisions of privatization on the eco-industry under their voluntary commitments. For this, we formulate a vertical structure consisting of a downstream polluting industry and an upstream mixed eco-industry where private and public eco-firms produce emission abatement goods. The results show a U-shaped non-monotone relationship between environmental damage and the optimal degree of privatization, that is, welfare-maximizing public ownership is full nationalization or full or partial privatization, depending on the environmental damage. It supports that the government should have large ownership of partially privatized eco-firms for environmental protection, especially when environmental damage is serious.

Funder

National Research Foundation of Korea

Publisher

Walter de Gruyter GmbH

Subject

Law,Economics, Econometrics and Finance (miscellaneous)

Link

https://www.degruyter.com/document/doi/10.1515/ajle-2022-0044/pdf

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