AcademicLectures：MergerProfitability, Consumer surplus and Social Welfare
ReportTitle:MergerProfitability, Consumer surplus and Social Welfare
Reporter(Institution):Leonard F.S. WANG（Departmentof Applied Economics, National University of Kaohsiung）
Time:02:00.pm,11th November, 2014
Location:B-201, Building of Economics & Management, JiulonghuCampus
Abstract:Strategic Environmental Policy under HorizontalMerger Abstract: This paper examines the impacts of horizontalmergers, which result in technology synergies of a production processof a lower marginal production cost or a production process of alower marginal emission, on the optimal emission tax rate in thepresence of free entry. We find that the emission tax rate is notchanged when the merger results in a production process of a lowermarginal production cost. We also find that, while a higher emissiontax rate after the merger is socially desirable, it may decreaseconsumer surplus. Thus, the government should not only identify thetechnology synergies result from the mergers but also consider thetrade-off between environmental damage and consumer surplus inchoosing the optimal emission tax rates.
