Impact of changes in market structure with price dominance on environmental policy decisions under uncertainty.

2023 Fiscal Year Final Research Report

• Project/Area Number: 19K13695
• Research Category: Grant-in-Aid for Early-Career Scientists
• Allocation Type: Multi-year Fund
• Review Section: Basic Section 07040:Economic policy-related
• Research Institution: Kyushu Sangyo University
• Principal Investigator: Mori Daiken 九州産業大学, 経済学部, 講師 (20779623)
• Project Period (FY): 2019-04-01 – 2024-03-31
• Keywords: 情報の非対称性 / 環境税 / 価格支配力 / セカンドベスト

Outline of Final Research Achievements

I analyze the efficiency of environmental policy when the government has uncertainty about the private information of firms and the level of environmental damage, focusing on the following two points. (1) when uncertainty about regulated dominant firms and non-policy fringe firms differs, and (2) measures to correct underproduction and overproduction in monopoly markets. The results of the study are as follows. (1) When the uncertainty of the regulated firms is relatively large, the expected welfare loss is smaller with quantity control, but when the uncertainty of the non-policy target firms is large, the taxation policy is more desirable. (2) It was concluded that a subsidy policy that satisfies market demand should always be preferred as a policy. The results also revealed that when the slope of the market demand function is relatively larger than the slope of the marginal loss function, the effectiveness of the subsidy policy is further enhanced.

Free Research Field

環境経済学

Academic Significance and Societal Importance of the Research Achievements

各国の環境政策は，エネルギー集約的な企業を対象としていることが多い。政策についても，環境税や排出権取引など，価格規制と数量規制のいずれかの手法が取られている。本研究成果では，限界削減費用と限界被害の相対的な大きさ，そして，政府が規制対象企業と非規制対象企業どちらの不確実性が大きいか，の2点が明らかとなれば，効率的な環境政策手段を決定することができる。この点は，政府の意思決定について一助となることが考えられる。また，環境保全を目的とした政策は歓迎される傾向が強いものの，効率性の観点からは，市場需要を満たす政策の方が望ましいという結論も，政策決定の一つの目安となることが考えられる。