Environmental Policies and Mergers¿ Externalities

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Main Author: Rafael S. Espinosa Ramirez
Format: Artículo científico
Language:en
Published: Centro de Investigación y Docencia Económicas, A.C. 2007
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author Rafael S. Espinosa Ramirez
author_facet Rafael S. Espinosa Ramirez
contents Environmental Policies and Mergers¿ Externalities Rafael S. Espinosa Ramirez M. Ozgur Kayalica Economía y Finanzas mergers emission permits environmental policies A Cournot oligopolistic setting model of trade is characterizedby local and foreign firms competing in the presence of pollution quotaand tax. Local firms are foreign-owned (FDI) and repatriate their profits.First, we analyze the impact on welfare given by the merger of the localfirms, as a response to external firms’ competition and pollution abatementcosts. Second, when merger is welfare decreasing, we study the bestresponse of the government in order to compensate this negative externality.Finally, we compare the pollution quota and tax in order to determinetheir efficiency as a policy instrument. 2007 artículo científico 1665-2045 https://www.redalyc.org/articulo.oa?id=32316102 en http://www.redalyc.org/revista.oa?id=323 Economía Mexicana. Nueva Época application/pdf Centro de Investigación y Docencia Económicas, A.C. Economía Mexicana. Nueva Época (México) Num.1 Vol.XVI
format Artículo científico
id redalyc_32316102
institution Redalyc
language en
publishDate 2007
publisher Centro de Investigación y Docencia Económicas, A.C.
spellingShingle Environmental Policies and Mergers¿ Externalities
Rafael S. Espinosa Ramirez
Economía y Finanzas
mergers
emission permits
environmental policies
Environmental Policies and Mergers¿ Externalities Rafael S. Espinosa Ramirez M. Ozgur Kayalica Economía y Finanzas mergers emission permits environmental policies A Cournot oligopolistic setting model of trade is characterizedby local and foreign firms competing in the presence of pollution quotaand tax. Local firms are foreign-owned (FDI) and repatriate their profits.First, we analyze the impact on welfare given by the merger of the localfirms, as a response to external firms’ competition and pollution abatementcosts. Second, when merger is welfare decreasing, we study the bestresponse of the government in order to compensate this negative externality.Finally, we compare the pollution quota and tax in order to determinetheir efficiency as a policy instrument. 2007 artículo científico 1665-2045 https://www.redalyc.org/articulo.oa?id=32316102 en http://www.redalyc.org/revista.oa?id=323 Economía Mexicana. Nueva Época application/pdf Centro de Investigación y Docencia Económicas, A.C. Economía Mexicana. Nueva Época (México) Num.1 Vol.XVI
title Environmental Policies and Mergers¿ Externalities
topic Economía y Finanzas
mergers
emission permits
environmental policies
url https://www.redalyc.org/articulo.oa?id=32316102