Environmental Policies in International Markets

Identifier:  TDX:3197

Handle: https://hdl.handle.net/20.500.11797/TDX3197

Authors:  Tomori, Françeska

Abstract:
This dissertation comprises three essays related to environmental policies in the international markets. Two essays consist of the analysis of theoretical models (specifically for the environmental policies in the automobile industry), and one in the analysis of both theoretical and empirical models, (specifically for the water market). automobile industry. The hypothesis states that in the light of the Volkswagen emissions scandal, a common belief that has formed is that regulatory capture in the control and setting of emission standards has led to lower pollution abatement and less environmental innovation in gasoline and diesel combustion engines. The results indicate that under a multiproduct monopoly regulatory capture only leads to more emissions and less innovation effort. The opposite is true under oligopoly competition. Thus, what hypothesis states is false. The second essay studies the market power in Californian's water market. The results of this study indicate that under the assumptions of the Cournot model, market power in this thin water market is limited. The robustness tests prove the same result. The third and final essay of the thesis provides a comparison of two policy instruments such as emission standards and acquisition taxes in the presence of Counot model with with n firms and vertically differentiated products for the automobile market. The results indicate that emission standards offer greater innovation incentives than do acquisition taxes. Consumers are better off under emission standards if tax revenues are not redistributed. Otherwise, they prefer an acquisition tax. Also, manufacturers are better off under acquisition taxes.