Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
959259 | Journal of Environmental Economics and Management | 2011 | 11 Pages |
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.
Related Topics
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Economics and Econometrics
Authors
Oliwia Kurtyka, Philippe Mahenc,