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oai:riuma.uma.es:10630/318772026-02-03T10:55:10Zcom_10630_2254col_10630_37953

Fikru, Mahelet G. Gautier, Luis 2024-07-04T09:05:34Z 2024-07-04T09:05:34Z 2020 Fikru, M. G., & Gautier, L. (2023). Cross-country Emission Tax Effect of Mergers. Arthaniti: Journal of Economic Theory and Practice, 22(1), 113-128. https://doi.org/10.1177/0976747920958094 https://hdl.handle.net/10630/31877 10.1177/0976747920958094 Recent studies show that mergers among polluting firms could affect the regulatory landscape of the industry and trigger a policy change. Using a two-country model, this study examines the effect o f a merger size, a s measured by the number of merging firms, on the optimal emission tax of another country. We show that, if pollution damages are not too large, a decline in the size of a merger reduces production and profits in that country, which affords a larger tax in the other country due to smaller profit-shifting c oncerns. On the other hand, if pollution damages are extremely large, a reduction in the size of a merger in one country reduces production in that country, but it also reduces production and emissions in the other country. Thus, the latter can induce a smaller emission tax. The change in the emission tax in both scenarios is consistent with cooperative outcomes. eng open access Impuestos ambientales Sociedades - Fusión Contaminación - Reducción Cross-country Emission Tax Effect of Mergers. journal article