Haruna, Shoji; Goel, Rajeev K. - 2018
We study optimal pollution abatement under a mixed oligopoly game when firms engage in emissions-reducing R&D that is … imperfectly appropriable. The regulator uses a tax to curb emissions. Results show that in a mixed oligopoly, the public firm has … certain conditions, the optimal pollution tax is positive; otherwise, the tax reverts to a subsidy. Comparing mixed and …