Trade liberalization, intra-industry trade and the environment: competition mode and the order of firms’ moves

Wang, Leonard F.S.; Wang, Ya‐Chin; Zhao, Lihong

doi:10.1007/s12232-008-0053-6

Cited by 2 publications

(1 citation statement)

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“…Recently, a few papers have analysed environmental taxation under price competition. This set of papers help us to understand a variety of issues, such as implications of consumer‐based tax policy (Toshimitsu, 2010), interdependence of strategic trade and environmental policies (Neary, 2006; Wang et al ., 2009), research and development (R&D) subsidy (Poyago‐Theotoky, 2003), role of multinational firms (Eerola, 2004), consequences of firm asymmetry (Requate, 1993; Lange and Requate, 1999), etc. However, none of these papers address the issue of strategic managerial delegation in the context of price competition in the product market, which is the main focus of this paper.…”

Section: Introductionmentioning

confidence: 99%

Delegation and Emission Tax in a Differentiated Oligopoly*

Pal

2011

The Manchester School

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This paper examines how product differentiation as well as strategic managerial delegation affects optimal emission tax rate, environmental damage and social welfare, under alternative modes of competition. It shows that, under pure profit maximization, the optimal emission tax rate is not necessarily decreasing in degree of product differentiation. Moreover, the impacts of delegation on the scope for the optimal emission tax rate to be lower for higher degree of product differentiation are very different under alternative modes of competition. Under price (quantity) competition, the equilibrium emission tax rate, environmental damage and social welfare are lower (higher) in the case of delegation.

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Section: Introductionmentioning

confidence: 99%

Delegation and Emission Tax in a Differentiated Oligopoly*

Pal

2011

The Manchester School

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Trade liberalization and the environment: The case of intra-industry trade

Fung

Maechler

2007

The Journal of International Trade & Economic Development

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While a large body of literature examines the environmental impact of trade on the environment, this discussion focuses largely on the context of inter-industry trade. Empirical evidence has long suggested that an increasing share of international trade takes the form of intra- rather than inter-industry trade. In an attempt to fill this gap, the present paper uses a price-setting duopoly model of intra-industry trade to highlight the environmental consequences of trade liberalization when oligopolistic rivalry rather than comparative advantage drives international trade. We find that the environmental impact of trade liberalization depends mostly on two factors, namely, on the nature of pollution (i.e. whether it is local, transboundary or global) and on which country liberalizes trade (i.e. whether it is the 'clean' country or the 'dirty' country).Trade, environment, intra-industry trade,

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Trade liberalization, intra-industry trade and the environment: competition mode and the order of firms’ moves

Abstract: Intra-industry trade, Trade liberalization, Competition mode, Order of firms’ moves, F18, D43,

Cited by 2 publications

References 12 publications

Delegation and Emission Tax in a Differentiated Oligopoly*

Delegation and Emission Tax in a Differentiated Oligopoly*

Trade liberalization and the environment: The case of intra-industry trade

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