|Title: ||Market structure and environmental costs: An analysis of air transport liberalization
||Author(s): ||Schipper Y.
||Abstract: ||In this paper, the effects of airline liberalization are analyzed taking into account the two distortions of market power and environmental damage. Parameter conditions that guarantee a positive welfare effect are derived; using empirical information, it is shown that one may expect a positive welfare conclusion with respect to airline liberalization in the fixed number duopoly case. Furthermore, non-cooperative taxation is compared with coordinated tax solutions. It is concluded that liberalization with taxation is always preferred to the case without taxation. Furthermore, I find that governments behaving strategically will generally not choose the welfare optimal tax. For low (high) environmental costs, the non-cooperative tax is too high (low), while the cooperative tax is negative (positive).
||Issue Date: ||2002
||Series/Report no.: ||Vol. 29, No. 1
|Appears in Collections:||INTERNATIONAL PUBLICATIONS|