Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/40661
Authors: 
Canton, Joan
David, Maia
Sinclair-Desgagné, Bernard
Year of Publication: 
2008
Series/Report no.: 
Nota di lavoro // Fondazione Eni Enrico Mattei: ETA, Economic theory and applications 2008,46
Abstract: 
This paper considers the environmental policy and welfare implications of a merger between environment firms (i.e., firms managing environmental resources or supplying pollution abatement goods and services). The traditional analysis of mergers in Cournot oligopolies is extended in two ways. First, we show how environmental policy affects the incentives of environment firms to merge. Second, we stress that mergers in the eco-industry impact welfare beyond what is observed in other sectors, due to an extra effect on pollution abatement efforts; this might lead to disagreements between an anti-trust agency seeking to limit market concentration which can be detrimental to consumer surplus and a benevolent regulator who maximizes total welfare.
Subjects: 
Eco-Industry
Environmental Policy
Horizontal Mergers
JEL: 
D62
H23
L11
Document Type: 
Working Paper

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