Original scientific paper
https://doi.org/10.1080/1331677X.2020.1804968
Environmental attitudes and impacts of privatization on R&D, environment and welfare in a mixed duopoly
Mingqing Xing
Tingting Tan
Abstract
We introduce the environmental attitudes of the public firm into
a polluting mixed duopoly and then examine the effects of privatization on the environmental R&D (ER&D), the environmental
quality and the social welfare. The government levies an exogenous environmental tax on pollution and both firms adopt the
cleaner production technology to reduce emissions. We mainly
find that, when the public firm cares less about the environment,
privatization can induce both firms’ ER&D and better the environment. However, the opposite may appear when the public firm
cares much for the environment. In addition, whether privatization improves or reduces the social welfare in the case of high
marginal environmental damage depends on the environmental
attitudes of the public firm and the environmental tax rates.
Keywords
Environmental R&D; cleaner production technology; mixed duopoly; privatization; environmental tax; environmental concern
Hrčak ID:
301191
URI
Publication date:
31.12.2021.
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