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| Abstract |
This paper presents an analysis of whether the government should privatize a polluting firm under a situation in which ransboundary pollution exists. This paper's characteristic is its consideration o...f circumstances in which the degree of the influence that pollution emissions exert on the environment can be assessed on various levels. This paper presents the following conclusions. When the effect that emissions have on environmental damage is small (large), privatization will decrease (increase) the output of the good in the region. These results are unlike those described for previous studies. Regarding the problem of the optimal policy decision of the government, this paper presents a demonstration that when the effects that emissions have on environmental damage are large (small), then the optimal policy decision of the government is not (full) privatization. Moreover, when the effect is small, the optimal policy decision of the government is partial privatization.show more
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