Pollution from Cournot duopoly industry and the effect of ambient charges

From the perspective of oligopoly theory, this paper clarifies the effectiveness of ambient charges as a policy measure for reducing industrial non-point source pollution. Ganguli and Raju argue that ambient charges have perverse effects in the context of Bertrand competition. By contrast, this pape...

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Bibliographic Details
Published inJournal of environmental economics and policy Vol. 6; no. 3; pp. 305 - 308
Main Author Sato, Hideki
Format Journal Article
LanguageEnglish
Published Routledge 01.01.2017
Subjects
ambient charges
Cournot competition
Duopoly market
emissions
non-point source pollution
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Summary:From the perspective of oligopoly theory, this paper clarifies the effectiveness of ambient charges as a policy measure for reducing industrial non-point source pollution. Ganguli and Raju argue that ambient charges have perverse effects in the context of Bertrand competition. By contrast, this paper examines the effects of ambient charges in the context of Cournot competition, clarifying that they are an effective policy measure. The result presented here is consistent with previous results in the field of experimental economics.
ISSN:2160-6544
2160-6552
DOI:10.1080/21606544.2017.1296381