Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74258
Authors: 
Canton, Joan
Year of Publication: 
2007
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 26.2007
Abstract: 
Environmental policies are discussed when two countries differ in their ability to abate pollution. Northern eco-industries (the industry supplying abatement activities) are more efficient than Southern ones. Segmented environmental markets and a Northern monopoly yield identical second-best taxes in both countries. When markets are global, Southern countries underestimate the market power of eco-industries. Introducing competition creates positive (resp. negative) rent-shifting distortions in South (resp. North). Cooperation could reduce Northern pollution but has ambiguous consequences in South.
Subjects: 
Eco-Industry
Strategic Environmental Policy
Asymmetric Oligopolies
JEL: 
D62
H23
F12
Document Type: 
Working Paper

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