Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - The switching effect of environmental taxation within Bertrand differentiated duopoly
AU - Kurtyka, Oliwia
AU - Mahenc, Philippe
PY - 2011/9
Y1 - 2011/9
N2 - We investigate second-best optimal taxation of the polluting variety of a product in a Bertrand duopoly with differentiated varieties. The analysis provides novel insight on a useful social function of environmental regulation. Besides internalizing the environmental externality, the taxation of the polluting variety improves the matching of consumers and product varieties, and so creates a socially desirable business switching between the differentiated varieties.
AB - We investigate second-best optimal taxation of the polluting variety of a product in a Bertrand duopoly with differentiated varieties. The analysis provides novel insight on a useful social function of environmental regulation. Besides internalizing the environmental externality, the taxation of the polluting variety improves the matching of consumers and product varieties, and so creates a socially desirable business switching between the differentiated varieties.
KW - Bertrand competition
KW - Differentiated products
KW - Environmental taxation
KW - Green demand
KW - Ramsey rule
U2 - 10.1016/j.jeem.2011.01.002
DO - 10.1016/j.jeem.2011.01.002
M3 - Journal article
VL - 62
SP - 267
EP - 277
JO - Journal of Environmental Economics and Management
JF - Journal of Environmental Economics and Management
SN - 0095-0696
IS - 2
ER -