The Comparison between Pigouvian Taxes and Quantity Restriction under Oligopoly

• Main Author: 黃瑋琪
• Other Authors: Lai, Ping-Yen
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/7vwjgy

碩士 === 銘傳大學 === 經濟學研究所 === 92 === ABSTRACT The purpose of this paper is to explore when home government enforces two different environmental protection policies under international duopoly how to affect home consumers and foreign firm’s export quantities. My paper used a conjectural variation approach to examine the equivalence of pigouvian taxes and quantity restriction. We have demonstrated that whether pigorvian taxes and quantity restriction are equivalent depends crucially upon the particular value of the conjectural variations. The equivalence holds only in the Cournot case; otherwise the domestic price is lower or higher under quantity restriction depending upon whether competition is less or more than Cournot. After that, we would further explore which the better environmental protection policy is when home government allows foreign firms to enter home country free. We found: The effects of the two policies to foreign firm are different because the market’s structures are different. But the two policies to foreign firm are the same if home government allows foreign firms to enter home country free.