Strategic Firm Interaction, Returns to Scale, Environmental Regulation and Ambient Charges in a Cournot Duopoly
Strategic Firm Interaction, Returns to Scale, Environmental Regulation and Ambient Charges in a Cournot Duopoly
复制标题
古诺双寡头垄断中的战略性企业互动、规模回报、环境监管和环境费用
DOI:
10.4236/ti.2013.42014
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发表时间:
2013
期刊:
影响因子:
--
通讯作者:
Subhadra Ganguli
中科院分区:
文献类型:
--
作者:
S. Raju;Subhadra Ganguli
Environmental regulation under conditions of
imperfect competition in the presence of nonpoint sources (NPS) of pollution
has not been well analyzed in the literature. This paper models strategic firm
interaction and the effect of ambient charges on total NPS pollution in an
imperfectly competitive, Cournot type duopoly under constant and decreasing
returns to scale (CRTS & DRTS). We identify two
distinct and often opposing effects. Under CRTS, the primary effect of a higher
ambient charge is to increase pollution abatement (and thus decrease pollution)
while the secondary effect is to lower output. Higher pollution abatement and
lower output reinforce each other so that a higher ambient charge results in an
unambiguous decrease in NPS pollution. Under DRTS, a higher ambient charge
decreases output but the effect on abatement is ambiguous. Moreover, the
marginal effect of a change in the ambient charge is larger under CRTS than
DRTS. Our results indicate that, in general, pollution control mechanisms such
as ambient charges tend to be more effective under CRTS.