Original scientific paper

https://doi.org/10.1080/1331677X.2021.2025122

Environmental taxes and the effects of partial privatization on environmental R&D, environment and welfare

Mingqing Xing
Lin Yang
Tingting Tan
Xia Wang
Qingjun Li
Bo Wang

Abstract

This paper considers environmental R&D (ER&D) of clean technology for reducing pollutant emissions in a polluting mixed duopoly and analyzes partial privatization’s impacts on ER&D,
environment and welfare. In the situation that environmental
taxes are exogenously given, it finds that the impacts of privatization policy on ER&D and environment critically depend on the
level of environmental damage. However, regardless of the marginal damage, an appropriate partial-privatization policy can
increase social welfare. In addition, it also considers an endogenously determined optimal environmental tax and shows that if
the marginal damage is high, partial privatization’s impacts on
ER&D, environment and social welfare may be not the same as
the exogenous environmental tax situation

Keywords

Partial privatization; environmental R&D; environmental quality; welfare; environmental tax; mixed duopoly

Hrčak ID:

302794

URI

https://hrcak.srce.hr/302794

Publication date:

31.3.2023.

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