{"title":"N-firm oligopolies with pollution control and random profits","authors":"Akio Matsumoto, Ferenc Szidarovszky","doi":"10.1007/s41685-022-00246-7","DOIUrl":null,"url":null,"abstract":"<div><p>An <i>n</i>-firm oligopoly is introduced in which, in addition to production levels, the pollution emissions are also included. A regulator cannot monitor individual emission volumes of firms, so uniform incentives are introduced to firms to reduce pollution concentrations. The regulator cannot observe the exact concentrations, so the incentives are also uncertain. Therefore, each firm considers random profit with expectations that it is maximized by minimizing variances or standard deviations. This idea leads to a multi-objective optimization problem for each firm, so two different concepts are applied as a solution. The unique positive Nash equilibrium is proven in all cases examined, and the effects of the environmental tax rate on industry output, prices, and pollution emission levels are analyzed.</p></div>","PeriodicalId":36164,"journal":{"name":"Asia-Pacific Journal of Regional Science","volume":null,"pages":null},"PeriodicalIF":1.9000,"publicationDate":"2022-06-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asia-Pacific Journal of Regional Science","FirstCategoryId":"1085","ListUrlMain":"https://link.springer.com/article/10.1007/s41685-022-00246-7","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 1
Abstract
An n-firm oligopoly is introduced in which, in addition to production levels, the pollution emissions are also included. A regulator cannot monitor individual emission volumes of firms, so uniform incentives are introduced to firms to reduce pollution concentrations. The regulator cannot observe the exact concentrations, so the incentives are also uncertain. Therefore, each firm considers random profit with expectations that it is maximized by minimizing variances or standard deviations. This idea leads to a multi-objective optimization problem for each firm, so two different concepts are applied as a solution. The unique positive Nash equilibrium is proven in all cases examined, and the effects of the environmental tax rate on industry output, prices, and pollution emission levels are analyzed.
期刊介绍：
The Asia-Pacific Journal of Regional Science expands the frontiers of regional science through the diffusion of intrinsically developed and advanced modern, regional science methodologies throughout the Asia-Pacific region. Articles published in the journal foster progress and development of regional science through the promotion of comprehensive and interdisciplinary academic studies in relationship to research in regional science across the globe. The journal’s scope includes articles dedicated to theoretical economics, positive economics including econometrics and statistical analysis and input–output analysis, CGE, Simulation, applied economics including international economics, regional economics, industrial organization, analysis of governance and institutional issues, law and economics, migration and labor markets, spatial economics, land economics, urban economics, agricultural economics, environmental economics, behavioral economics and spatial analysis with GIS/RS data education economics, sociology including urban sociology, rural sociology, environmental sociology and educational sociology, as well as traffic engineering. The journal provides a unique platform for its research community to further develop, analyze, and resolve urgent regional and urban issues in Asia, and to further refine established research around the world in this multidisciplinary field. The journal invites original articles, proposals, and book reviews.The Asia-Pacific Journal of Regional Science is a new English-language journal that spun out of Chiikigakukenkyuu, which has a 45-year history of publishing the best Japanese research in regional science in the Japanese language and, more recently and more frequently, in English. The development of regional science as an international discipline has necessitated the need for a new publication in English. The Asia-Pacific Journal of Regional Science is a publishing vehicle for English-language contributions to the field in Japan, across the complete Asia-Pacific arena, and beyond.Content published in this journal is peer reviewed (Double Blind).
京公网安备 11010802042870号
京ICP备2023020795号-1
分享
求助内容：
应助结果提醒方式：
扫码关注我们
