Environmental taxation: Privatization with Different Public Firm’s Objective Functions

Authors

Fernanda A. Ferreira, ESEIG.IPP, Applied Management Research Unit (UNIAG), Polytechnic Institute of Porto, Rua D. Sancho I, 981, 4480-876 Vila do Conde, Portugal.Follow
Flavio Ferreira, ESEIG.IPP, Applied Management Research Unit (UNIAG), Polytechnic Institute of Porto, Rua D. Sancho I, 981, 4480-876 Vila do Conde, Portugal.Follow

Author Country (or Countries)

Portugal.

Abstract

In this paper, we study the effects of environmental taxes and privatization in a mixed market, by considering that the public firm aims to maximize the social welfare. The model has two stages. In the first stage, the government sets the environmental tax. Then, the firms engage in a Cournot competition, choosing output and pollution abatement levels. We also compare the results obtained with the ones got when the public firm aims to maximize the sum of consumer surplus and the firm’s profit.

Digital Object Identifier (DOI)

http://dx.doi.org/10.18576/amis/100503

Recommended Citation

A. Ferreira, Fernanda and Ferreira, Flavio (2016) "Environmental taxation: Privatization with Different Public Firm’s Objective Functions," Applied Mathematics & Information Sciences: Vol. 10: Iss. 5, Article 3.
DOI: http://dx.doi.org/10.18576/amis/100503
Available at: https://digitalcommons.aaru.edu.jo/amis/vol10/iss5/3