Privatization, pollution, and welfare in a mixed differentiated duopoly
This paper investigates the impacts exerted by the residents’ environmental preference on privatization in a mixed differentiated duopoly. We assume that the production will generate environmental pollution, which causes an extra cost that the private firm does not bear but residents with the enviro...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Economists' Association of Vojvodina
2018-01-01
|
| Series: | Panoeconomicus |
| Subjects: | |
| Online Access: | http://www.doiserbia.nb.rs/img/doi/1452-595X/2018/1452-595X1800001P.pdf |
| _version_ | 1819075653037719552 |
|---|---|
| author | Pi Jiancai Guan Yiwen |
| author_facet | Pi Jiancai Guan Yiwen |
| author_sort | Pi Jiancai |
| collection | DOAJ |
| description | This paper investigates the impacts exerted by the residents’ environmental preference on privatization in a mixed differentiated duopoly. We assume that the production will generate environmental pollution, which causes an extra cost that the private firm does not bear but residents with the environmental preference have to tolerate. The government pursues to maximize social welfare. We find that the residents’ environmental preference has significant impacts on privatization. When residents pay more attention to environmental pollution, privatization cannot induce more social welfare, and thus the government will choose not to privatize the public firm. The degree of substitution of products will affect the results when the value of the residents’ environmental preference is given, but the order of the firms’ moves will not change the results. |
| first_indexed | 2024-12-21T18:28:49Z |
| format | Article |
| id | doaj.art-bb9bb7fc60ee4fcaa8954c759fcd7c94 |
| institution | Directory Open Access Journal |
| issn | 1452-595X 2217-2386 |
| language | English |
| last_indexed | 2024-12-21T18:28:49Z |
| publishDate | 2018-01-01 |
| publisher | Economists' Association of Vojvodina |
| record_format | Article |
| series | Panoeconomicus |
| spelling | doaj.art-bb9bb7fc60ee4fcaa8954c759fcd7c942022-12-21T18:54:20ZengEconomists' Association of VojvodinaPanoeconomicus1452-595X2217-23862018-01-0165439541010.2298/PAN130909001P1452-595X1800001PPrivatization, pollution, and welfare in a mixed differentiated duopolyPi Jiancai0Guan Yiwen1Nanjing University, Department of Economics, P.R. ChinaNanjing University, Department of Economics, P.R. ChinaThis paper investigates the impacts exerted by the residents’ environmental preference on privatization in a mixed differentiated duopoly. We assume that the production will generate environmental pollution, which causes an extra cost that the private firm does not bear but residents with the environmental preference have to tolerate. The government pursues to maximize social welfare. We find that the residents’ environmental preference has significant impacts on privatization. When residents pay more attention to environmental pollution, privatization cannot induce more social welfare, and thus the government will choose not to privatize the public firm. The degree of substitution of products will affect the results when the value of the residents’ environmental preference is given, but the order of the firms’ moves will not change the results.http://www.doiserbia.nb.rs/img/doi/1452-595X/2018/1452-595X1800001P.pdfenvironmental preferenceprivatizationdifferentiated duopolysocial welfare |
| spellingShingle | Pi Jiancai Guan Yiwen Privatization, pollution, and welfare in a mixed differentiated duopoly Panoeconomicus environmental preference privatization differentiated duopoly social welfare |
| title | Privatization, pollution, and welfare in a mixed differentiated duopoly |
| title_full | Privatization, pollution, and welfare in a mixed differentiated duopoly |
| title_fullStr | Privatization, pollution, and welfare in a mixed differentiated duopoly |
| title_full_unstemmed | Privatization, pollution, and welfare in a mixed differentiated duopoly |
| title_short | Privatization, pollution, and welfare in a mixed differentiated duopoly |
| title_sort | privatization pollution and welfare in a mixed differentiated duopoly |
| topic | environmental preference privatization differentiated duopoly social welfare |
| url | http://www.doiserbia.nb.rs/img/doi/1452-595X/2018/1452-595X1800001P.pdf |
| work_keys_str_mv | AT pijiancai privatizationpollutionandwelfareinamixeddifferentiatedduopoly AT guanyiwen privatizationpollutionandwelfareinamixeddifferentiatedduopoly |