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AA00260492-20140000-0083.pdf
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:5.5 MB
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:Jan 6, 2015 |
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| Title |
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Efficient horizontal mergers in polluting industries with green R&D and endogenous taxation
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Lambertini, Luca
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Department of Economics, University of Bologna, ITALY
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Tampieri, Alessandro
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Faculty of law, Economics and Finance, University of Luxembourg, LUXEMBOURG
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Keio Economic Society, Keio University
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2014
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Keio economic studies
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50
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2014
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83
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89
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| Abstract |
We investigate the feasibility of horizontal mergers in a homogeneous triopoly where firms production is polluting the environment, firms compete in quantities and invest in green R&D, and a regulator endogenously sets environmental taxation. We show that the degree of alignment between private and social incentives decreases in the intensity of pollution.
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| environmental externality
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