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政大典藏 > College of Social Science > Department of Economics > Periodical Articles > Item 140.119/121431

Please use this identifier to cite or link to this item: https://nccur.lib.nccu.edu.tw/handle/140.119/121431

Title:	Increasing worldwide environmental consciousness and environmental policy adjustment
Authors:	Weng, Yungho;Hsu, Kuang-Chung;Liu, Bih Jane 翁永和 Weng, Yungho
Contributors:	經濟系
Keywords:	Environmental consciousness;Nash equilibrium policy;Efficient policy;Policy gap;Environmental policy adjustment
Date:	2018-08
Issue Date:	2018-12-18 17:58:00 (UTC+8)
Abstract:	Increasing worldwide environmental consciousness has been driving countries in the world to adjust their environmental policies. Conventional wisdom often suggests tightening environmental policy, but this paper challenges that wisdom. By using an oligopoly model, we show that, in the case of local pollution, a country that confronts increasing environmental consciousness tightens or slackens its environmental policy depending on the relative cost competitiveness to its rivals. However, in the case of global pollution, all countries in the world always tighten their environmental policies as worldwide environmental consciousness rises. These results derived from the optimal non-cooperative (Nash) equilibrium policy that maximizes own country’s welfare are valid in the case of efficient policy setting in which policy is chosen to maximize global welfare. The policy gap between these two equilibria may increase or decrease as environmental consciousness changes, relying on the relative competitiveness to firm’s rivals and on the initial level of environmental
Relation:	Quarterly Review of Economics and Finance
Data Type:	article
DOI link:	https://doi.org/10.1016/j.qref.2018.08.003
DOI:	10.1016/j.qref.2018.08.003
Appears in Collections:	[Department of Economics] Periodical Articles

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