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Optimal pollution tax under international competition

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Competition for firms in an oligopolistic industry : do firms or countries have to pay?

Haufler, Andreas; Wooton, Ian - 2007

We set up a model of generalised oligopoly where two countries of different size compete for an exogenous, but variable, number of identical firms. The model combines a desire by national governments to attract internationally mobile firms with the existence of location rents that arise even in...