Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/168298
Authors: 
Voßwinkel, Jan
Birg, Laura
Year of Publication: 
2017
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Industrial Organisation Theory II F12-V1
Abstract: 
This paper studies the effect of an emission tax on the relocation decision of firms, when a duopolistic market is characterized by vertical quality differentiation. The Nash-equilibria of relocation choices depend discontinuously on the cost of relocation φ and the quality difference λ. If also the foreign country F applies an emission tax and both governments set taxes uncooperatively, the high quality firm never relocates to F in equilibrium.
JEL: 
H23
F18
L13
Q58
Document Type: 
Conference Paper

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