Environmental and international tariffs in a mixed duopoly

Ferreira, Fernanda A.; Ferreira, Flávio

http://hdl.handle.net/10400.22/4522

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Authors

Ferreira, Fernanda A.

Ferreira, Flávio

Abstract(s)

In this paper, we study the effects of environmental and trade policies in an international mixed duopoly serving two markets, in which the public ﬁrm maximizes the sum of consumer surplus and its proﬁt. We also analyse the effects of privatization. The model has two stages. In the ﬁrst stage, governments choose environmental taxes and import tariffs, simultaneously. Then, the ﬁrms engage in a Cournot competition, choosing output levels for the domestic market and to export. We compare the results obtained in the three different ways of moving on the decision make of the ﬁrms.