Multielement optimization of environmental tax on FDI of heterogeneous manufacturers based on Melitz model derivation

Multielement optimization of environmental tax on FDI of heterogeneous manufacturers based on Melitz model derivation

The present study concerned about the issue of optimal environmental tax under the assumption of heterogeneous productivity of firms when foreign direct investment (FDI) is allowed. A Melitz model was developed to calculate the effect of environmental tax on FDI when two governments adopt either a c...

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Main Authors: Yang Zhou, Lili You, Zhen Tang
Format: Article
Language:English
Published: Elsevier 2021-12-01
Series:Alexandria Engineering Journal
Subjects:
Foreign Direct Investment
Heterogeneous Firms
Trade and Environment
Online Access:http://www.sciencedirect.com/science/article/pii/S1110016821002039
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spelling doaj-a469b9931d894911b173ce54204859d52021-06-07T06:45:33ZengElsevierAlexandria Engineering Journal1110-01682021-12-0160652175225Multielement optimization of environmental tax on FDI of heterogeneous manufacturers based on Melitz model derivationYang Zhou0Lili You1Zhen Tang2Business School, Hohai University, Nanjing 211100, ChinaSchool of Management, Wenzhou Business College, Wenzhou 325000, China; Corresponding authors.Business School, Hohai University, Nanjing 211100, China; Corresponding authors.The present study concerned about the issue of optimal environmental tax under the assumption of heterogeneous productivity of firms when foreign direct investment (FDI) is allowed. A Melitz model was developed to calculate the effect of environmental tax on FDI when two governments adopt either a cooperative or a competitive strategy. The results showed that the impacts of environmental policy on FDI is different when different strategies are adopted by the governments. These differences in both strategies heavily depend on price effects and profit effects. In conclusion, in order to decide the optimal environmental tax, it is important to consider marginal benefits and costs on environmental investments.http://www.sciencedirect.com/science/article/pii/S1110016821002039Foreign Direct InvestmentHeterogeneous FirmsTrade and Environment
collection DOAJ
language English
format Article
sources DOAJ
author Yang Zhou
Lili You
Zhen Tang
spellingShingle Yang Zhou
Lili You
Zhen Tang
Multielement optimization of environmental tax on FDI of heterogeneous manufacturers based on Melitz model derivation
Alexandria Engineering Journal
Foreign Direct Investment
Heterogeneous Firms
Trade and Environment
author_facet Yang Zhou
Lili You
Zhen Tang
author_sort Yang Zhou
title Multielement optimization of environmental tax on FDI of heterogeneous manufacturers based on Melitz model derivation
title_short Multielement optimization of environmental tax on FDI of heterogeneous manufacturers based on Melitz model derivation
title_full Multielement optimization of environmental tax on FDI of heterogeneous manufacturers based on Melitz model derivation
title_fullStr Multielement optimization of environmental tax on FDI of heterogeneous manufacturers based on Melitz model derivation
title_full_unstemmed Multielement optimization of environmental tax on FDI of heterogeneous manufacturers based on Melitz model derivation
title_sort multielement optimization of environmental tax on fdi of heterogeneous manufacturers based on melitz model derivation
publisher Elsevier
series Alexandria Engineering Journal
issn 1110-0168
publishDate 2021-12-01
description The present study concerned about the issue of optimal environmental tax under the assumption of heterogeneous productivity of firms when foreign direct investment (FDI) is allowed. A Melitz model was developed to calculate the effect of environmental tax on FDI when two governments adopt either a cooperative or a competitive strategy. The results showed that the impacts of environmental policy on FDI is different when different strategies are adopted by the governments. These differences in both strategies heavily depend on price effects and profit effects. In conclusion, in order to decide the optimal environmental tax, it is important to consider marginal benefits and costs on environmental investments.
topic Foreign Direct Investment
Heterogeneous Firms
Trade and Environment
url http://www.sciencedirect.com/science/article/pii/S1110016821002039
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AT liliyou multielementoptimizationofenvironmentaltaxonfdiofheterogeneousmanufacturersbasedonmelitzmodelderivation
AT zhentang multielementoptimizationofenvironmentaltaxonfdiofheterogeneousmanufacturersbasedonmelitzmodelderivation
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