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Environmental regulation and horizontal mergers in the eco-industry AgEcon
Canton, Joan; David, Maia; Sinclair-Desgagne, Bernard.
This paper considers the environmental policy and welfare implications of a merger between environment firms (i.e., firms managing environmental resources or supplying pollution abatement goods and services). The traditional analysis of mergers in Cournot oligopolies is extended in two ways. First, we show how environmental policy affects the incentives of environment firms to merge. Second, we stress that mergers in the eco-industry impact welfare beyond what is observed in other sectors, due to an extra effect on pollution abatement efforts; this might lead to disagreements between an anti-trust agency seeking to limit market concentration which can be detrimental to consumer surplus and a benevolent regulator who maximizes total welfare.
Tipo: Conference Paper or Presentation Palavras-chave: Eco-industry; Environmental policy; Horizontal mergers; Environmental Economics and Policy; Industrial Organization; D62; H23; L11.
Ano: 2008 URL: http://purl.umn.edu/44456
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Polluters and Abaters AgEcon
Nimubona, Alain-Desire; Bernard, Sinclair-Desgagne.
To comply with laws, regulations and social demands, polluting firms increasingly purchase the needed means from specialized suppliers. This paper analyzes this relatively recent phenomenon. We show how environmental regulation, the size of the output market, the elasticity of demand for abatement goods and services, and the fact that in-house and outsourced abatement expenses are substitutes or complements can influence a polluter’s make-or-buy decision. Specific features of abatement outsourcing are highlighted, qualifications and refinements of the theory of vertical integration are then proposed, and some consequences for environmental policy are briefly discussed.
Tipo: Working or Discussion Paper Palavras-chave: Eco-industry; Make-or-buy Decision; Outsourcing; Vertical Integration; Environmental Economics and Policy; L23; L24; Q52.
Ano: 2010 URL: http://purl.umn.edu/98467
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