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Does privatization improve the environment?

journal contribution
posted on 2006-12-01, 00:00 authored by H Beladi, Chi-Chur Chao
Privatization towards profit maximization lowers output and hence encourages a lower tax rate. Because of the reduced tax effect, output is increased when the demand function is highly convex. This gives a paradoxical result that privatization harms the environment.

History

Journal

Economics letters

Volume

93

Issue

3

Pagination

343 - 347

Publisher

Elsevier

Location

Amsterdam, The Netherlands

ISSN

0165-1765

Language

eng

Publication classification

C1.1 Refereed article in a scholarly journal

Copyright notice

2006, Elsevier B.V.

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