dc.description.abstract | As the pollution of the earth becomes more and more serious, many manufacturers have also begun to take care of the environment spontaneously. Traditionally, governments needed to internalize environmental externalities by levying pollution taxes, but manufacturers are now willing to internalize them voluntarily. Therefore, this paper intends to study if such a situation exists, and in a mixed duopoly market with foreign direct investment, how the production decisions of manufacturers will be different, and how the government will set the optimal pollution tax. We know that the government sets the optimal pollution tax with the goal of maximizing social welfare; public cooperation produce with the goal of maximizing social welfare; private cooperation produce with the goal of maximizing profits. This paper discusses two situations in which there is only one domestic public firm and one foreign private firm in the market, and one domestic private firm is added. The mode of operation is that the government first sets the optimal pollution tax, and each manufacturer conducts production according to this tax rate. In this paper, the backward pass is used to find the two-stage game.
Before domestic private manufacturers have joined the market, we found that the increase in the production cost of domestic public manufacturers, unit pollution emissions of domestic public manufacturers and environmental pollution will increase the pollution tax; the production cost of foreign private manufacturers, the unit pollution emissions of foreign private manufacturers and the environmental concern of foreign private manufacturers will decrease the pollution tax. We also find that if domestic private manufacturers join the market, the pollution tax will not be affected when the domestic private manufacturers are more concerned about the environment; the production cost and the environmental concern of foreign private manufacturers will decrease the pollution tax; When the production cost of domestic public manufacturers, the production cost of domestic private manufacturers, the unit pollution emissions of the three manufacturers and the environmental damage increase, the direction of the pollution tax changes will be uncertain. | en_US |