Cargando…

Environmental offsets and production externalities under monopolistic competition

In a monopolistically competitive model with production externalities, where individuals voluntarily provide offsets which compensate for degradation of environmental quality caused by their income earning activities, this paper examines how an increase in the population size affects the equilibrium...

Descripción completa

Detalles Bibliográficos
Autores principales: Yoshida, Masatoshi, Turnbull, Stephen J., Ota, Mitsuru
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer US 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8741143/
https://www.ncbi.nlm.nih.gov/pubmed/35035100
http://dx.doi.org/10.1007/s10797-021-09699-6
_version_ 1784629424574955520
author Yoshida, Masatoshi
Turnbull, Stephen J.
Ota, Mitsuru
author_facet Yoshida, Masatoshi
Turnbull, Stephen J.
Ota, Mitsuru
author_sort Yoshida, Masatoshi
collection PubMed
description In a monopolistically competitive model with production externalities, where individuals voluntarily provide offsets which compensate for degradation of environmental quality caused by their income earning activities, this paper examines how an increase in the population size affects the equilibrium levels of environmental quality, offsets, and net contributions. Whether labor supply is institutionally constrained or not, as the population size increases, environmental quality decreases and converges to zero. However, since offsets increase and converge to the degradation rate of environmental quality, the carbon neutrality theorem holds: net contributions are zero. These results are independent of the specification of the utility function.
format Online
Article
Text
id pubmed-8741143
institution National Center for Biotechnology Information
language English
publishDate 2022
publisher Springer US
record_format MEDLINE/PubMed
spelling pubmed-87411432022-01-10 Environmental offsets and production externalities under monopolistic competition Yoshida, Masatoshi Turnbull, Stephen J. Ota, Mitsuru Int Tax Public Financ Article In a monopolistically competitive model with production externalities, where individuals voluntarily provide offsets which compensate for degradation of environmental quality caused by their income earning activities, this paper examines how an increase in the population size affects the equilibrium levels of environmental quality, offsets, and net contributions. Whether labor supply is institutionally constrained or not, as the population size increases, environmental quality decreases and converges to zero. However, since offsets increase and converge to the degradation rate of environmental quality, the carbon neutrality theorem holds: net contributions are zero. These results are independent of the specification of the utility function. Springer US 2022-01-07 2023 /pmc/articles/PMC8741143/ /pubmed/35035100 http://dx.doi.org/10.1007/s10797-021-09699-6 Text en © The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2022 This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic.
spellingShingle Article
Yoshida, Masatoshi
Turnbull, Stephen J.
Ota, Mitsuru
Environmental offsets and production externalities under monopolistic competition
title Environmental offsets and production externalities under monopolistic competition
title_full Environmental offsets and production externalities under monopolistic competition
title_fullStr Environmental offsets and production externalities under monopolistic competition
title_full_unstemmed Environmental offsets and production externalities under monopolistic competition
title_short Environmental offsets and production externalities under monopolistic competition
title_sort environmental offsets and production externalities under monopolistic competition
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8741143/
https://www.ncbi.nlm.nih.gov/pubmed/35035100
http://dx.doi.org/10.1007/s10797-021-09699-6
work_keys_str_mv AT yoshidamasatoshi environmentaloffsetsandproductionexternalitiesundermonopolisticcompetition
AT turnbullstephenj environmentaloffsetsandproductionexternalitiesundermonopolisticcompetition
AT otamitsuru environmentaloffsetsandproductionexternalitiesundermonopolisticcompetition