This paper analyzes the interaction between two political economy decisions by a government: whether to privatize a public firm and what environmental policy to choose (an environmental tax or an emission standard). We find that when market competition is weak the government does not privatize...

The literature on mixed oligopoly does not consider the strategic interaction between governments when they decide whether to privatize their publicly-owned firms. In order to analyze this question, we consider two countries and assume that publicly-owned firms are less efficient than private...