Economic and environmental impacts of vertical and horizontal competition and integration
Economic and environmental impacts of vertical and horizontal competition and integration
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DOI：
10.1002/nav.21832
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发表时间：
2019-03-01
影响因子：
2.3
通讯作者：
Kim, Bowon
中科院分区：
文献类型：
--
作者：
Sim, Jeongeun;El Ouardighi, Fouad;Kim, Bowon
我们探索市场结构（垂直和水平水平水平的竞争或整合）的经济和环境影响。我们考虑一个双边双头垄断的两个制造商和两个零售商，其中每个制造商提供一个批发价格合同给各自的零售商。制造商决定批发价格和减少与制造过程有关的污染排放的努力，而零售商则在消费市场上进行数量竞争。为了理解市场结构对经济竞争力和环境可持续性的综合影响，我们考察了一个衡量生态友好型社会福利的指标，即社会福利与环境污染的比率。有趣的是，我们发现，从更广泛的角度来看，被认为是更有效的市场结构是效率较低的：（1）双重边缘化可以产生更高的生态友好型社会福利，（2）企业之间的横向竞争可以导致更低的生态友好型社会福利。虽然纵向一体化和横向竞争通过促进更多的生产活动而产生更大的社会福利，但这些市场结构往往不能引起足够的减排努力来平衡大量生产的污染影响，从而导致更严重的环境退化。我们还表明，尽管污染抑制效果，更高的排放罚款可能会导致更少的生态友好型社会福利。在特定情况下，它们甚至可以限制企业的减排努力。当产品的可替代性增强时，生态友好型社会福利会随着市场结构的变化而降低。
We explore the economic and environmental impacts of market structures (competition or integration at vertical and horizontal levels). We consider a bilateral duopoly consisting of two manufacturers and two retailers in which each manufacturer offers a wholesale price contract to the respective retailer. The manufacturers decide on wholesale prices and abatement efforts concerning pollution emissions related to manufacturing processes, whereas the retailers compete in quantities in the consumer market. To understand the comprehensive effects of market structures on economic competitiveness and environmental sustainability, we examine a measure of eco-friendly social welfare, which is the ratio of social welfare and environmental pollution. Interestingly, we find that the market structures that have been believed to be more efficient are less efficient from a broader perspective: (1) double marginalization can generate higher eco-friendly social welfare, and (2) horizontal competition between firms can result in lower eco-friendly social welfare. Although vertical integration and horizontal competition yield greater social welfare by facilitating more production activities, these market structures often fail to induce sufficient abatement efforts to balance the polluting effect of the large volume, resulting in more significant environmental degradation. We also show that, despite the pollution-curbing effect, higher emission penalties can result in less eco-friendly social welfare. They can even curtail the abatement efforts of firms under particular circumstances. When products become more substitutable, the eco-friendly social welfare can decrease depending upon the market structure.