Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Environmental Taxation Location: D-106 Session Chair: Corinne Langinier, University of Alberta | |
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Environmental Taxation and Technological Choice under Cournot Competition University of Valencia, Spain This paper explores the relationship between competition and the emission intensity used by firms when a tax on emissions is applied. An oligopolistic model is presented where firms produce a homogeneous good and compete in quantities. In this setting, the intensity of competition is represented by the number of firms in the industry. It is shown that an increase in emission tax encourages firms to adopt a cleaner technology and reduce output, yielding a reduction on emissions. Assuming a linear demand and quadratic marginal cost in the emission intensity, it is established that as competition increases, the optimal tax raises and the emission intensity decreases. Thus, competition promotes green innovation. Although individual output and emissions are reduced, industry output and emissions increase due to a higher number of firms in the market. | |