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- W2019916797 abstract "In partial equilibrium competitive models in which emissions are proportional to output, the optimal output of individual firms in a polluting industry is the same with or without a Pigouvian tax. The same holds in general equilibrium only if the production function of those firms is homothetic. The Pigouvian tax increases the price of the polluting good, reducing industry output, and, as a consequence, the relative price of the input in which polluting firms are relatively intensive. They will adjust their input ratios accordingly, and if production functions are non-homothetic, this will either increase or decrease the level of output at which the total profit of the individual firm is zero. Une analyse en equilibre general du nombre optimal de firmes dans une industrie polluante. Dans les modeles concurrentiels en equilibre partiel, la production optimale des firmes individuelles dans une industrie polluante est identique qu'il y ait ou non une taxe a la Pigou. On obtient le meme rdsultat en equilibre general si la fonction de production de ces firmes est homothetique. La taxe 'a la Pigou augmente le prix du produit polluant, reduit le niveau de production de l'industrie, et par voie de consequence le prix relatif de l'intrant employe de fa9on relativement intensive par les firmes polluantes. Ces firmes vont ajuster les ratios d'intrants en consequence. Si les fonctions de production ne sont pas homothetiques, ces ajustements vont augmenter ou reduire le niveau de production qui correspond a un profit total nul pour la firme individuelle." @default.
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- W2019916797 date "1985-05-01" @default.
- W2019916797 modified "2023-09-27" @default.
- W2019916797 title "A General Equilibrium Analysis of the Optimal Number of Firms in a Polluting Industry" @default.
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- W2019916797 doi "https://doi.org/10.2307/135140" @default.
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