This paper examines the effect of emission taxes on pollution abatement and social welfare, when abatement goods and services are provided by a Cournot oligopoly with free-entry. We point out initially that a higher tax not only increases demand for abatement; it also makes polluters less...

Most governments acknowledge nowadays the strategic importance of the environmental goods and services industry (or eco-industry), in the new economy centered on knowledge, innovation and environmental protection. However, the underlying dynamics of this booming sector is still poorly...