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01-Applied Mathematics & Information Sciences
An International Journal


Volumes > Volume 10 > No. 5


Environmental taxation: Privatization with Different Public Firmís Objective Functions

PP: 1657-1661
Fernanda A. Ferreira, Flavio Ferreira,
In this paper, we study the effects of environmental taxes and privatization in a mixed market, by considering that the public firm aims to maximize the social welfare. The model has two stages. In the first stage, the government sets the environmental tax. Then, the firms engage in a Cournot competition, choosing output and pollution abatement levels. We also compare the results obtained with the ones got when the public firm aims to maximize the sum of consumer surplus and the firmís profit.

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