Applied Mathematics & Information Sciences

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In this paper, we study trade and environmental policies in an international duopoly serving two countries, with pollution abatement. This analysis is done in both mixed and privatized markets. The model has two stages: First, governments choose environmental taxes and import tariffs, simultaneously; then, the firms compete in the market by choosing output levels for the domestic market and to export and also abatement levels. We analyse the effects of privatization, and we also compare the results obtained in the international competition with the ones got in a domestic competition.

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