Strategic Firm Interaction, Returns to Scale, Environmental Regulation and Ambient Charges in a Cournot Duopoly
Why this work is in the frame
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Bibliographic record
Abstract
Environmental regulation under conditions of imperfect competition in the presence of nonpoint sources (NPS) of pollution has not been well analyzed in the literature. This paper models strategic firm interaction and the effect of ambient charges on total NPS pollution in an imperfectly competitive, Cournot type duopoly under constant and decreasing returns to scale (CRTS & DRTS). We identify two distinct and often opposing effects. Under CRTS, the primary effect of a higher ambient charge is to increase pollution abatement (and thus decrease pollution) while the secondary effect is to lower output. Higher pollution abatement and lower output reinforce each other so that a higher ambient charge results in an unambiguous decrease in NPS pollution. Under DRTS, a higher ambient charge decreases output but the effect on abatement is ambiguous. Moreover, the marginal effect of a change in the ambient charge is larger under CRTS than DRTS. Our results indicate that, in general, pollution control mechanisms such as ambient charges tend to be more effective under CRTS.
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Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.000 | 0.000 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.000 | 0.000 |
| Science and technology studies | 0.000 | 0.000 |
| Scholarly communication | 0.000 | 0.000 |
| Open science | 0.000 | 0.000 |
| Research integrity | 0.000 | 0.000 |
| Insufficient payload (model declined to judge) | 0.000 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it