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Leonard F. S. Wang, Ya-chin Wang and Lihong Zhao
''Privatization and the Environment in a Mixed Duopoly with Pollution Abatement''
( 2009, Vol. 29 No.4 )
The purpose of this note is to re-examine whether privatization improves the environment or not in a mixed duopolistic model. In our model, both firms adopt pollution abatement technologies in response to the environmental tax imposed by the government. It is shown that privatization unambiguously reduces the pollution levels of firms. Namely, privatization does improve the environment. Moreover, by implementing partial-privatization policy, social welfare can be enhanced.
Keywords: Environmental Taxes; Mixed Oligopoly: Privatization
JEL: Q5 - Environmental Economics: General
L1 - Oligopoly and Other Imperfect Markets
Manuscript Received : Oct 01 2009 Manuscript Accepted : Dec 16 2009

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