Carbon tax/subsidy policy choice and its effects in the presence of interest groups

Energy Policy ◽  
2020 ◽  
Vol 147 ◽  
pp. 111886
Author(s):  
Ping Yu
2018 ◽  
Vol 118 (1) ◽  
pp. 262-282
Author(s):  
Qing Liu ◽  
Senlin Zhao ◽  
Qinghua Zhu

Purpose The purpose of this paper is to extend game analysis to explore decision-making mechanisms for promoting a specific type of products, low energy consumption for individual one while the total energy consumption is huge due to the high quantity of sales, that is, low for individual and high for total (LIHT) in terms of energy consumption. Design/methodology/approach Game models are developed to compare decisions of optimal prices for newly developed and environmentally friendly (NDEF) and regular products as well as associated sales quantity, profits, carbon emissions under different governmental policies, along with a case of low energy-intensive broadband terminal products in the Chinese telecommunication industry under the carbon tax and subsidy policies. Findings For both NDEF and regular products, optimal prices decrease under the subsidy policy while both increase under the tax policy. Manufacturers’ decision of optimal prices is highly relevant with unit carbon tax/subsidy and the consumers’ preference. Both the tax and subsidy policies can improve consumption of NDEF products while the subsidy policy can be more effective at the current initial stage. Research limitations/implications This paper provides decision support for manufacturers to promote sustainable consumption of LIHT products. Research ideas on models development and solutions for optimal prices can be applied to other LIHT products. Practical implications The results provide insights for governments on how to effectively evaluate and motivate sustainable consumption for LIHT products. Originality/value This paper first explores how to motivate sustainable consumption of LIHT products by developing models, examining effectiveness of potential governmental policies as well as associated carbon emissions.


2012 ◽  
Vol 17 (4) ◽  
pp. 461-477 ◽  
Author(s):  
Ana Espínola-Arredondo ◽  
Huan Zhao

AbstractThis paper analyzes how a tax/subsidy policy affects consumers' behavior when choosing between green (pollution-free goods) and conventional products, and its effects on welfare when a proportion of consumers have strong preferences for green goods. We analyze a Hotelling's linear city model where final products by two firms are symmetric in all dimensions except for the externality their production process generates. Our efficiency comparisons suggest that, under a setting of horizontal product differentiation, an environmental regulation (either on polluting firms or consumers buying their products) yields higher social welfare than the absence of policy. Moreover, the proportion of consumers who prefer green products affects the welfare gains from a subsidy or tax policy.


1974 ◽  
Vol 9 (4) ◽  
pp. 225-242 ◽  
Author(s):  
M. Donald Hancock

Utilizing principles of countersystem analysis, derived from earlier co-authored studies of domestic change in advanced industrial societies, the author considers alternative consequences of Sweden's 1972 free trade treaty with the expanded European Community. On the basis of interviews with a systematic sample of leading officials in the government, parliament, the administration, interest groups, and the communication media as well as a qualitative assessment of Swedish foreign policy requirements, the author posits three conceivable patterns of policy choice in Sweden's future relations with the Common Market: (1) expanded trade and technical cooperation, (2) ad hoc membership in the EEC, and (3) assertive neutrality. Elite expectations and contemporary economic-technological links between Sweden and Western Europe indicate that the most probable course among these alternatives is ad hoc membership.


2001 ◽  
Vol 16 (6) ◽  
pp. 497-508 ◽  
Author(s):  
Jayatilleke S Bandara ◽  
Anthony Chisholm ◽  
Anura Ekanayake ◽  
Sisira Jayasuriya

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