Affiliation:
1. School of Economics and Management Weifang University Weifang China
2. School of Economics & Management Huzhou University Huzhou China
3. School of Chemical and Environmental Engineering Weifang University Weifang China
Abstract
AbstractWe investigate the optimal privatization policy in a polluting mixed duopoly when environmental taxes are used. Firms adopt clean technology to reduce emissions. We consider the situation of exogenous tax and find that (i) partial privatization is always optimal under low marginal damage, while full nationalization may be optimal under high marginal damage; (ii) the optimal privatization level always increases with tax rate under low marginal damage, while it may decrease with tax rate under high marginal damage. As an extension, we consider the endogenous tax situation and show that full nationalization may be optimal under sufficiently high marginal damage.
Funder
Natural Science Foundation of Shandong Province
National Natural Science Foundation of China
State Key Laboratory of High-efficiency Utilization of Coal and Green Chemical Engineering, Ningxia University
Subject
Management of Technology and Innovation,Management Science and Operations Research,Strategy and Management,Business and International Management
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