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Environmental policies with the excess burden of public funds and privatisation.
- Source :
- Australian Economic Papers; Jun2024, Vol. 63 Issue 2, p329-349, 21p
- Publication Year :
- 2024
-
Abstract
- 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. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 0004900X
- Volume :
- 63
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Australian Economic Papers
- Publication Type :
- Academic Journal
- Accession number :
- 178020635
- Full Text :
- https://doi.org/10.1111/1467-8454.12334