Does partial privatization improve the environment?

Rupayan Pal
Bibhas Saha
Working Paper Series
JEL codes: 
This paper shows that, in case of differentiated products mixed duopoly, environmental damage increases (decreases) with the level of privatization, if the level of privatization is less (more) than certain level. It also shows that partial privatization is optimal from the social welfare point of view. However, the social welfare maximizing level of privatization damages the environment most.