Environmental Externalities and the Optimal Level of Market Power
推导出农业化学品生产商因市场势力而减产的趋势恰好抵消因忽视环境外部性而过度生产的条件，并估算出氮、磷、农药行业的福利损失被环境收益完全抵消所需的边际污染成本。
Abstract This article derives the condition under which agricultural chemical producers' desire to under‐produce, associated with market power, exactly offsets the tendency to overproduce, due to their failure to consider externality costs of agricultural chemicals. This condition is satisfied when the price markup in the chemical industries equals the marginal environmental damages caused by chemicals. Our estimates of price markup for nitrogen, phosphate, and pesticides industries indicate that the welfare loss caused by market power is exactly offset by environmental benefits if the marginal pollution costs are, respectively, eight, nine, and twenty‐two cents for each dollar's worth of these chemicals.