Publicação
Environmental policy versus industrial policy in a small open economy
| Resumo: | The absence of integrated industrial and environmental policies in small open economies for which pollution harmful effects are relevant, might lead to both inefficient and ineffective equilibrium solutions.Let's assume that, in a small economy, we have a concentrated industry whose firms produce negative externalities as a result of pollutant emissions. In this situation, the environmental policy agency and the department responsible for the industrial policy would decide on two opposite strategies: while the former would forget the market structure, the latter would be unaware of the existence of externalities. According to industrial economists, the main concern would be the competition and/or anti-trust policies to minimize distortions on resource allocation resulting from the existence of market power. The practical consequences of these policies are the reduction on the price of output and the increase on the level of production.As for environmental economists, they would propose the internalization of costs by firms (following a Pigouvian strategy) which would imply a reduction both in output and in the emissions of residuals. In section 2 it is showed that the separate_ implementation of each of these policies (industrial policy or environmental policy) can induce perverse effects, that is, it can lead to a negative variation on total surplus. The relevance of this fact is due to the following factors: the most concentrated industries are also those which generate more pollution; and industrial and environmental policies are decided by two separate public agencies. In section 3, it is attempted to solve the indetermination underlying the abovementioned results. In fact, it is showed that, in a small economy facing an increasing international integration, environmental policy can be efficient, while industrial policy is neither efficient nor effective. Finally, in section 4 the impact of environmental and industrial policies on the market structure is studied. |
|---|---|
| Autores principais: | Martins, Manuel Victor |
| Outros Autores: | Santos, Vitor M. |
| Assunto: | Small Open Economy Pollution Industrial Policy Environmental Policy Mathematical Models |
| Ano: | 1990 |
| País: | Portugal |
| Tipo de documento: | working paper |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| _version_ | 1866809631261589504 |
|---|---|
| author | Martins, Manuel Victor |
| author2 | Santos, Vitor M. |
| author2_role | author |
| author_facet | Martins, Manuel Victor Santos, Vitor M. |
| author_role | author |
| contributor_name_str_mv | Repositório Científico de Acesso Aberto da ULisboa |
| country_str | PT |
| creators_json_txt | [{\"Person.name\":\"Martins, Manuel Victor\"},{\"Person.name\":\"Santos, Vitor M.\"}] |
| datacite.contributors.contributor.contributorName.fl_str_mv | Repositório Científico de Acesso Aberto da ULisboa |
| datacite.creators.creator.creatorName.fl_str_mv | Martins, Manuel Victor Santos, Vitor M. |
| datacite.date.Accepted.fl_str_mv | 1990-01-01T00:00:00Z |
| datacite.date.available.fl_str_mv | 2021-11-29T15:14:22Z |
| datacite.date.embargoed.fl_str_mv | 2021-11-29T15:14:22Z |
| datacite.rights.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| datacite.subjects.subject.fl_str_mv | Small Open Economy Pollution Industrial Policy Environmental Policy Mathematical Models |
| datacite.titles.title.fl_str_mv | Environmental policy versus industrial policy in a small open economy |
| dc.contributor.none.fl_str_mv | Repositório Científico de Acesso Aberto da ULisboa |
| dc.creator.none.fl_str_mv | Martins, Manuel Victor Santos, Vitor M. |
| dc.date.Accepted.fl_str_mv | 1990-01-01T00:00:00Z |
| dc.date.available.fl_str_mv | 2021-11-29T15:14:22Z |
| dc.date.embargoed.fl_str_mv | 2021-11-29T15:14:22Z |
| dc.format.none.fl_str_mv | application/pdf |
| dc.identifier.none.fl_str_mv | http://hdl.handle.net/10400.5/22589 |
| dc.language.none.fl_str_mv | eng |
| dc.publisher.none.fl_str_mv | ISEG - Departamento de Economia |
| dc.rights.none.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| dc.subject.none.fl_str_mv | Small Open Economy Pollution Industrial Policy Environmental Policy Mathematical Models |
| dc.title.fl_str_mv | Environmental policy versus industrial policy in a small open economy |
| dc.type.none.fl_str_mv | http://purl.org/coar/resource_type/c_8042 |
| description | The absence of integrated industrial and environmental policies in small open economies for which pollution harmful effects are relevant, might lead to both inefficient and ineffective equilibrium solutions.Let's assume that, in a small economy, we have a concentrated industry whose firms produce negative externalities as a result of pollutant emissions. In this situation, the environmental policy agency and the department responsible for the industrial policy would decide on two opposite strategies: while the former would forget the market structure, the latter would be unaware of the existence of externalities. According to industrial economists, the main concern would be the competition and/or anti-trust policies to minimize distortions on resource allocation resulting from the existence of market power. The practical consequences of these policies are the reduction on the price of output and the increase on the level of production.As for environmental economists, they would propose the internalization of costs by firms (following a Pigouvian strategy) which would imply a reduction both in output and in the emissions of residuals. In section 2 it is showed that the separate_ implementation of each of these policies (industrial policy or environmental policy) can induce perverse effects, that is, it can lead to a negative variation on total surplus. The relevance of this fact is due to the following factors: the most concentrated industries are also those which generate more pollution; and industrial and environmental policies are decided by two separate public agencies. In section 3, it is attempted to solve the indetermination underlying the abovementioned results. In fact, it is showed that, in a small economy facing an increasing international integration, environmental policy can be efficient, while industrial policy is neither efficient nor effective. Finally, in section 4 the impact of environmental and industrial policies on the market structure is studied. |
| dirty | 0 |
| eu_rights_str_mv | openAccess |
| format | workingPaper |
| fulltext.url.fl_str_mv | https://repositorio.ulisboa.pt/bitstreams/7989c708-5903-4dc2-90a1-15a38ca961f2/download |
| id | ul_a87fae0a60507b92a6b5cfd783a4ed21 |
| identifier.url.fl_str_mv | http://hdl.handle.net/10400.5/22589 |
| instacron_str | ul |
| institution | Universidade de Lisboa |
| instname_str | Universidade de Lisboa |
| language | eng |
| network_acronym_str | ul |
| network_name_str | Repositório da Universidade de Lisboa |
| oai_identifier_str | oai:repositorio.ulisboa.pt:10400.5/22589 |
| organization_str_mv | urn:organizationAcronym:ul |
| person_str_mv | Martins, Manuel Victor Santos, Vitor M. |
| publishDate | 1990 |
| publisher.none.fl_str_mv | ISEG - Departamento de Economia |
| reponame_str | Repositório da Universidade de Lisboa |
| repository_id_str | urn:repositoryAcronym:ul |
| service_str_mv | urn:repositoryAcronym:ul |
| spelling | engISEG - Departamento de Economiapt_PTThe absence of integrated industrial and environmental policies in small open economies for which pollution harmful effects are relevant, might lead to both inefficient and ineffective equilibrium solutions.Let's assume that, in a small economy, we have a concentrated industry whose firms produce negative externalities as a result of pollutant emissions. In this situation, the environmental policy agency and the department responsible for the industrial policy would decide on two opposite strategies: while the former would forget the market structure, the latter would be unaware of the existence of externalities. According to industrial economists, the main concern would be the competition and/or anti-trust policies to minimize distortions on resource allocation resulting from the existence of market power. The practical consequences of these policies are the reduction on the price of output and the increase on the level of production.As for environmental economists, they would propose the internalization of costs by firms (following a Pigouvian strategy) which would imply a reduction both in output and in the emissions of residuals. In section 2 it is showed that the separate_ implementation of each of these policies (industrial policy or environmental policy) can induce perverse effects, that is, it can lead to a negative variation on total surplus. The relevance of this fact is due to the following factors: the most concentrated industries are also those which generate more pollution; and industrial and environmental policies are decided by two separate public agencies. In section 3, it is attempted to solve the indetermination underlying the abovementioned results. In fact, it is showed that, in a small economy facing an increasing international integration, environmental policy can be efficient, while industrial policy is neither efficient nor effective. Finally, in section 4 the impact of environmental and industrial policies on the market structure is studied.application/pdfpt_PTEnvironmental policy versus industrial policy in a small open economyMartins, Manuel VictorSantos, Vitor M.HostingInstitutionOrganizationalRepositório Científico de Acesso Aberto da ULisboae-mailmailto:repositorio@reitoria.ulisboa.ptrepositorio@reitoria.ulisboa.pt2021-11-29T15:14:22Z19901990-01-01T00:00:00ZHandlehttp://hdl.handle.net/10400.5/22589http://purl.org/coar/access_right/c_abf2open accessSmall Open EconomyPollutionIndustrial PolicyEnvironmental PolicyMathematical Models874763 bytesother research producthttp://purl.org/coar/resource_type/c_8042working paperhttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://repositorio.ulisboa.pt/bitstreams/7989c708-5903-4dc2-90a1-15a38ca961f2/download |
| spellingShingle | Environmental policy versus industrial policy in a small open economy Martins, Manuel Victor Small Open Economy Pollution Industrial Policy Environmental Policy Mathematical Models |
| status | SINGLETON |
| subject.fl_str_mv | Small Open Economy Pollution Industrial Policy Environmental Policy Mathematical Models |
| title | Environmental policy versus industrial policy in a small open economy |
| title_full | Environmental policy versus industrial policy in a small open economy |
| title_fullStr | Environmental policy versus industrial policy in a small open economy |
| title_full_unstemmed | Environmental policy versus industrial policy in a small open economy |
| title_short | Environmental policy versus industrial policy in a small open economy |
| title_sort | Environmental policy versus industrial policy in a small open economy |
| topic | Small Open Economy Pollution Industrial Policy Environmental Policy Mathematical Models |
| topic_facet | Small Open Economy Pollution Industrial Policy Environmental Policy Mathematical Models |
| url | http://hdl.handle.net/10400.5/22589 |
| visible | 1 |