Horizontal product differentiation and policy adjustment in the presence of abatement subsidies and emission taxes

Gautier, Luis

doi:10.1080/21606544.2014.972467

Cited by 9 publications

(3 citation statements)

References 23 publications

(33 reference statements)

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“…Ashraf et al (2013) find that offering product information to the consumers can greatly enhance the effect of subsidy program in increasing the adoption of health product in developing countries. Taking the perspective of the producer firm, Bansal and Gangopadhyay (2003) and Gautier (2015) analyze how tax-subsidy policies impact competing firms' output decisions. There are other related studies that analyze the interaction between the consumers and the private donors (e.g., Ben-Zion and Spiegel 1983).…”

Section: Literature Reviewmentioning

confidence: 99%

The Effects of Subsidies on Increasing Consumption through For‐Profit and Not‐For‐Profit Newsvendors

Berenguer

Feng

Shanthikumar

et al. 2017

Production and Operations Management

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Subsidy programs are widely offered in both developing and developed countries to encourage consumption of products that generate positive social, health, and environmental externalities. We study the effect of subsidies on product consumption under uncertain market demand. To reach a target consumer population, the program sponsor may subsidize a for‐profit or a not‐for‐profit firm on each unit of the product purchased by the firm or on each unit of the sale generated by the firm. We show that subsidy programs provide stronger incentives to a not‐for‐profit firm than to its for‐profit counterpart in inducing a large consumption whenever the sponsor is having a very limited budget or a very generous budget. When subsidizing a not‐for‐profit firm, the sponsor should always choose the purchase subsidy over the sales subsidy because the former can induce a larger consumption than the latter with the same subsidy spending. However, this is not always true when the subsidy program is administered through a for‐profit firm, unless the firm is a price taker in the market or the sponsor has a limited budget. Our analysis leads to new theoretical development of price‐setting newsvendor problem for both the for‐profit and not‐for‐profit operations under subsidy.

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Section: Literature Reviewmentioning

confidence: 99%

The Effects of Subsidies on Increasing Consumption through For‐Profit and Not‐For‐Profit Newsvendors

Berenguer

Feng

Shanthikumar

et al. 2017

Production and Operations Management

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“…Youssef and Dinar (2011) analysed the optimal combination of emission taxes and R&D subsidies in polluting industries, while David and Sinclair‐Desgagné (2010) examined pollution abatement subsidies and emission taxes in the eco‐industry. Gautier (2015) considered product differentiation and policy adjustment in the presence of abatement subsidies and emission taxes. Furthermore, Lee and Tomaru (2017) examined different policy combinations but demonstrated that R&D investment combined with an output subsidy can be taxed.…”

Section: Introductionmentioning

confidence: 99%

Environmental policies with the excess burden of public funds and privatisation

Kim,

Lee

2024

Australian Economic Papers

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This study investigates the interaction of environmental policies with the shadow cost of public funds and the efficiency of green research and development (R&D), while considering the presence of a public firm. In the policy combination of emission taxes and green R&D subsidies, we find that it has an implementable region where the shadow cost is neither high nor low, but the green R&D efficiency is high. We also demonstrate that the privatisation of public firms decreases the rates of both emission taxes and green R&D subsidies under a single policy regime. This increases (decreases) the implementable region of the policy combination of the emission tax (green subsidy) and is only implementable in the presence of a public firm. Finally, privatisation is shown to increase welfare when the shadow cost is lowest and green R&D is less efficient. These findings highlight that public ownership substitutes for environmental policies, while the shadow cost of public funds and the green R&D efficiency are critical when privatising public firms.

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“…Gautier L discussed the impact of product differentiation on optimal decisions in the Cournot model. Studies have shown that when subsidies and emission reduction technologies exist, increased product differentiation can enable governments to withstand tax increases [23]. Kuo T C et al use a supply chain network design to analyze the trade-off between carbon emission and cost.…”

Section: Introductionmentioning

confidence: 99%

Research on Intelligent Decision of Low Carbon Supply Chain Based on Carbon Tax Constraints in Human-Driven Edge Computing

Liu

Zhao

et al. 2020

IEEE Access

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Edge computing moves data and storage to one end of edge nodes. The advantages of direct data collection and intelligent analysis are gradually being considered as disruptive technologies to promote social progress. Many fields and industries are exploring the use of edge technologies. To achieve the goal of improving efficiency and optimizing business models, the supply chain is one of the areas where edge computing technology can be prioritized. Therefore, the organization and coordination of the supply chain must take into account both energy saving and emission reduction and intelligent decision-making effects. This paper establishes a basic decision-making model for the supply chain under the carbon tax constraint and compares and analyzes the optimal decision-making problem of the supply chain between the centralized and decentralized decisions of producers and retailers under the carbon tax constraint. Then, the supply chain optimization under the three conditions of considering the repurchase contract, the subsidy policy and the joint strategy of both the repurchase and the subsidy under the constraint of carbon tax are discussed. Research shows that carbon tax can play a role in reducing carbon emissions, but for some industries with smaller profit margins, relying solely on carbon tax policy may lead to reduced benefits and make business development difficult. Therefore, considering the combined strategy of repurchase and subsidy at the same time, the dual goals of emission reduction and economic benefits can be achieved. INDEX TERMS Edge computing, carbon tax constraint, low carbon supply chain, intelligent decision.

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Horizontal product differentiation and policy adjustment in the presence of abatement subsidies and emission taxes

Cited by 9 publications

References 23 publications

The Effects of Subsidies on Increasing Consumption through For‐Profit and Not‐For‐Profit Newsvendors

The Effects of Subsidies on Increasing Consumption through For‐Profit and Not‐For‐Profit Newsvendors

Environmental policies with the excess burden of public funds and privatisation

Research on Intelligent Decision of Low Carbon Supply Chain Based on Carbon Tax Constraints in Human-Driven Edge Computing

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