On the interplay between resource extraction and polluting emissions in oligopoly

Luca Lambertini

This paper offers an overview of the literature discussing oligopoly games in which polluti ng emissions are generated by the supply of goods requiring a natural resource as an input. An analytical summary of the main features of the interplay between pollution and resource extraction is then given using a differential game based on the Cournot oligopoly model, in which (i) the bearings on resource preservation of Pigouvian tax rate tailored on emissions are singled out and (ii) the issue of the optimal number of firms in the commons is also addressed.

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Year of publication:	November 5, 2014
Authors:	Lambertini, Luca
Publisher:	Bologna, Italy : Alma Mater Studiorum - Università di Bologna, Department of Economics
Subject:	pollution \| commons \| natural resources \| green R&D \| emission taxation \| di¤erential games \| Oligopol \| Oligopoly \| Umweltbelastung \| Pollution \| Umweltabgabe \| Environmental charge \| Ökosteuer \| Environmental tax \| Luftverschmutzung \| Air pollution \| Ressourcenökonomik \| Resource economics \| Gemeingüter \| Commons \| Natürliche Ressourcen \| Natural resources \| Umweltökonomik \| Environmental economics \| Umweltpolitik \| Environmental policy \| Erschöpfbare Ressourcen \| Exhaustible resources \| Spieltheorie \| Game theory

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