Abstract
This study reveals that the environmental tax gets less stringent when the manufacturer’s distribution channel becomes more decentralized. Contrary to the classic double marginalization problem, the first implication is that a monopolistic manufacturer benefits from decentralization when its technology is sufficiently polluting. Secondly, with two competing manufacturers, both are more likely to decentralize in equilibrium when their technologies are more polluting. Under certain conditions, decentralized manufacturers may enjoy higher profits thanks to tax cuts without affecting social welfare or consumer surplus. Various extensions of the base models confirm the robustness of the analytical results.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Transportation Research Part E: Logistics and Transportation Review
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
