TEL  Vol.8 No.5 , April 2018
Environmental Policy for Non-Point Source Pollutions in a Bertrand Duopoly
ABSTRACT
This study investigates the effectiveness of ambient charges under non-point source (NPS) pollutions in an imperfect competition framework. To this end, following Ganguli and Raju, it constructs a one-stage game and a two-stage game in which Bertrand duopolistic firms choose their best prices and abatement technology, respectively. It is demonstrated in both games that an increase in the ambient charge can lead to a decrease in pollution. This finding indicates that the ambient charge can efficiently control pollution in a Bertrand duopoly.
Cite this paper
Matsumoto, A. , Nakayama, K. and Szidarovszky, F. (2018) Environmental Policy for Non-Point Source Pollutions in a Bertrand Duopoly. Theoretical Economics Letters, 8, 1058-1069. doi: 10.4236/tel.2018.85073.
References
[1]   Ganguli, S. and Raju, S. (2012) Perverse Environmental Effects of Ambient Charges in a Bertrand Duopoly. Journal of Environmental Economics and Policy, 1, 289-296.
https://doi.org/10.1080/21606544.2012.714972

[2]   Segerson, K. (1988) Uncertainty and Incentives for Non-Point Pollution Control. Journal of Environmental Economics and Management, 15, 87-98.
https://doi.org/10.1016/0095-0696(88)90030-7

[3]   Raju, S. and Ganguli, S. (2013) Strategic Firm Interaction, Return to Scale, Environmental Regulation and Ambient Charges in a Cournot Duopoly. Technology and Investment, 4, 113-122.
https://doi.org/10.4236/ti.2013.42014

[4]   Matsumoto, A., Szidarovszky, F. and Yabuta, M. (2018) Environmental Effects of Ambient Charge in Cournot Oligopoly. Journal of Environmental Economic Policy, 7, 41-56.
https://doi.org/10.1080/21606544.2017.1347527

[5]   Ishikawa, T., Matsumoto, A. and Szidarovszky, F. (2017) Regulation of Non-Point Source Pollution under n-Firm Bertrand Competition. IERCU DP #284, Institute of Economic Research, Chuo University.

 
 
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