Abstract
This research examines how foreign ownership affects the choice of two environmental policies. We find that a monopoly with foreign ownership produces more (less) and abates less (more) under emission standards than under emission taxes. As foreign ownership increases, with a small foreign ownership level the government is more likely to adopt the emission tax; and with a large foreign ownership level, if the abatement efficiency is high, then the government is also more likely to adopt the emission tax. We also examine the duopoly case in which a domestic firm with foreign ownership competes with another pure domestic firm.
Original language | English |
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Pages (from-to) | 392-404 |
Number of pages | 13 |
Journal | Economic Record |
Volume | 98 |
Issue number | 323 |
DOIs | |
State | Published - Dec 2022 |