Citations


Contact Us

For Marketing, Sales and Subscriptions Inquiries
2637 E Atlantic Blvd #43110
Pompano Beach, FL 33062
USA

Conference List

Pollution Tax Under Imperfect Competition and Air Transport in a Domestic Economy

Salami Dada Kareem

,

Odubunmi Ayoola Sunkanmi

,

Atoyebi Kehinde

,

Lawal A. Samad

Salami Dada Kareem 1 ,

Odubunmi Ayoola Sunkanmi 1 Atoyebi Kehinde 1 Lawal A. Samad 1 
  1. Department of Economics, Lagos State University, Ojo, Nigeria 1

Pages: 44-51

DOI: 10.18488/journal.62.2017.43.44.51

Share :

Article History:

Received: 16 May, 2017
Revised: 13 June, 2017
Accepted: 22 June, 2017
Published: 05 July, 2017


Abstract:

This paper empirically demonstrates the possibility of setting up an optimal pollution tax under imperfect markets and international trade in a domestic economy. The model illustrates a situation of partial equilibrium characterized by imperfect competition among domestic producers, where the domestic good is used as an alternative for an imported polluting commodity. In this paper, we bring in the possibility that the domestic firms can introduce innovative ideas through investment in R&D. The result shows that the optimal pollution tax under domestic economic distortions is a function of a ‘domestic production effect’ and a ‘pollution effect’. The paper concludes that when the firms execute R&D expenditures, the optimal policy adds an ‘innovative effect’, which captures the change in welfare coming from a reduction in total costs and this lead our results to a win-win situation.

Contribution/ Originality
The paper contributes in the existing literature by illustrating the case of partial equilibrium characterized by imperfect market among domestic producers. It introduces innovative ideas through   the incorporation of investment in research and development. The paper concludes that under a win – win situation optimal environmental policy represent a policy tax.

Keywords:

Optimal pollution tax, Perfect competition, CO2 emission, Domestic firm and endogenous Investment

Video:

Reference:

p>Basso, S., 2008. Strategic environmental policy and international trade. Journal of Public Economics, 54(3): 325-338.

Conrad, K., 2009. Taxes and subsidies for pollution-intensive industries as trade policy. Journal of Environmental Economics and Management, 25: 121-135.

Corden, W., 2013. Trade policy and economic welfare. 2nd Edn., Oxford: Clarendon Press.

Kennedy, P.W., 2014. Equilibrium pollution taxes in open economies with imperfect competition. Journal of Environmental Economics and Management, 27: 49-63.

Porter, M., 2015. The competitive advantage of the nations. New York: Free Press.

Solarin, D.R. and R.L. Bradford, 2014. Taxing variable cost: Environmental regulation as industrial policy. Journal of Environmental Economics and Management, 30: 282-300.

Ulph, A., 2014. Environmental policy and international trade when governments and producers act strategically. Journal of Environmental Economics and Management, 30: 256-281.

Statistics:

Google Scholor ideas Microsoft Academic Search bing Google Scholor

Funding:

This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.

Acknowledgement:

All authors contributed equally to the conception and design of the study.

Related Article

( 1 ) Pollution Tax Under Imperfect Competition and Air Transport in a Domestic Economy
( 2 ) Awareness on Air Pollution and Risk Preparedness among Residents in Kigali City of Rwanda
( 3 ) Effective Tax Administration and Institutionalization of Accounting Systems in Small and Medium Scale Enterprises: Evidence from Nigeria
( 4 ) Determinants of Tax Revenue in Ethiopia (Johansen Co-Integration Approach)
( 5 ) Empirical Evidence on Municipal Tax Policy and Firm Growth
( 7 ) The Effect of Selected Factors on Tax Revenue Mobilization in Ethiopia: The Case of Amhara Region
( 8 ) Determinants of Corporate Tax Avoidance Strategies among Multinational Corporations in Malaysia
( 9 ) Determinant of Tax Revenue Effort in Sub-Saharan African Countries: A Stochastic Frontier Analysis
( 10 ) Effect of Tax Administration on Tax Revenue of States in African Countries: Evidence from Nigeria
( 13 ) Factors Impacting on SMEs Internationalization: Dairy Industry in Zimbabwe
( 16 ) Investigate Airport Service Quality- A Case Study of Airports in Shanghai
( 17 ) Seasonal Assessment of Relative Humidity, Ambient Air Temperature and CO2 Concentration Level in School Buildings of Kigali-Rwanda
( 18 ) Contemporary Approach to Enhanced Road Transport System in Nigeria Through the Application of It-Based (Online) Bus Ticketing and Payment System
( 19 ) Impact of Labour, Capital and Human Resources in Productivity of Transport Firms in Nigeria
( 20 ) A Review on EU Transportation Projects within the Case of Turkey for European Union Regional Development Policy
( 21 ) Effect of Media Transportation and Advertising Transportation on Customers Responsiveness
( 23 ) Rethinking Port Role as Transport Corridor under Symbiosis Theory-Case Study of China-Europe Trade Transportation
( 24 ) The Effect of Public Debt on Domestic Product and Unemployment (An Empirical Study on the Palestinian Economy)
( 26 ) An Empirical Investigation of the Impact of FDI, Export and Gross Domestic Savings on the Economic Growth in Bangladesh
( 27 ) Marxist Political Economy and the Crisis of Relevance in Contemporary World
( 28 ) Kashmir Peasant Economy under Dogra’s: A Case Study of Agrarian Produce and Livestock 1885-1925 A.D
( 29 ) Gaining Trust After the Financial Crisis in the Nigerian Economy: A Conceptual Framework
( 30 ) The Prospects of Accounting and Economic Systems in the Era of Global Knowledge Economy
( 31 ) An Essay on the Political Economy of Fiscal Policy Making in Pakistan
( 32 ) The Impact of Rice Production, Consumption and Importation in Nigeria: The Political Economy Perspectives