Environmental Policies, Mergers and Welfare

Unlike previous theoretical studies, we examine the welfare effects of a merger when participating firms are in a pollution-intensive sector. With passive environmental policy we show that profitable mergers reduce welfare; and this is because the reduction in consumer surplus and tax revenue domina...

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Detalles Bibliográficos
Autor principal: Mahelet Getachew Fikru
Formato: Artículo científico
Publicado: Centro de Investigación y Docencia Económicas, A.C. 2013
Materias:
Economía y Finanzas
Keywords
end-of-the-pipe type abatement
environmental policy
merger
pollution intensity
welfare
Acceso en línea:http://www.redalyc.org/articulo.oa?id=32329969008
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-010&d=32329969008oai
Aporte de:
Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO) de Consejo Latinoamericano de Ciencias Sociales
id I16-R122-32329969008oai
record_format dspace
institution Consejo Latinoamericano de Ciencias Sociales
institution_str I-16
repository_str R-122
collection Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO)
topic Economía y Finanzas
Keywords
end-of-the-pipe type abatement
environmental policy
merger
pollution intensity
welfare
spellingShingle Economía y Finanzas
Keywords
end-of-the-pipe type abatement
environmental policy
merger
pollution intensity
welfare
Mahelet Getachew Fikru
Environmental Policies, Mergers and Welfare
topic_facet Economía y Finanzas
Keywords
end-of-the-pipe type abatement
environmental policy
merger
pollution intensity
welfare
description Unlike previous theoretical studies, we examine the welfare effects of a merger when participating firms are in a pollution-intensive sector. With passive environmental policy we show that profitable mergers reduce welfare; and this is because the reduction in consumer surplus and tax revenue dominates any rise in profit and utility. On the contrary, with active policies we show that profitable mergers are welfare enhancing due to lower gross pollution, higher consumer sur - plus, lower tax costs and efficiency gains. The results imply that though environ - mental policies are adopted for the primary purpose of reducing pollution, such policies may have a negative effect on social welfare if they do not take into ac - count the market structure and competitiveness of sectors.
format Artículo científico
Artículo científico
author Mahelet Getachew Fikru
author_facet Mahelet Getachew Fikru
author_sort Mahelet Getachew Fikru
title Environmental Policies, Mergers and Welfare
title_short Environmental Policies, Mergers and Welfare
title_full Environmental Policies, Mergers and Welfare
title_fullStr Environmental Policies, Mergers and Welfare
title_full_unstemmed Environmental Policies, Mergers and Welfare
title_sort environmental policies, mergers and welfare
publisher Centro de Investigación y Docencia Económicas, A.C.
publishDate 2013
url http://www.redalyc.org/articulo.oa?id=32329969008
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-010&d=32329969008oai
work_keys_str_mv AT maheletgetachewfikru environmentalpoliciesmergersandwelfare
bdutipo_str Repositorios
_version_ 1764820422085312513

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