In nonrenewable resource industries, the existence of a markup of price over marginal market cost may reflect the existence of an implicit user cost for the resource rather than market power. We show that valid estimates of market power can be obtained by the joint estimation of a restricted...

Increasing urbanization and industrialization can exacerbate pollution problems in developing countries. Tax revenues in developing countries are too low to support adequate infrastructure for treating and disposing of wastes, but the problem is also attributable to the classic problem of...