Papers by Tsung-hsiu Tsai
We set up a two-country model in which a foreign firm chooses FDI or exporting to enter the host ... more We set up a two-country model in which a foreign firm chooses FDI or exporting to enter the host market, and plays a Cournot competition game with n host firms. Facing the host country's emission tax policy, all firms located in the host country use the same abatement technology to abate emissions. The major findings are as follows. When the trade cost is high and the abatement technology is efficient, a higher emission tax rate may encourage FDI. Moreover, under plausible parameters, raising the emission tax to drive the foreign firm out of the host country will be detrimental to environmental quality but raise consumer surplus in the host country. The interaction of the abatement technological efficiency and trade cost with emission tax plays a key role in the entry mode of the foreign firm and the associate welfare of the host country.

The impact of social capital on regional waste recycling
Sustainable Development, 2008
Waste recycling is a prominent indicator of environmental sustainability in the pursuit of sustai... more Waste recycling is a prominent indicator of environmental sustainability in the pursuit of sustainable development. Exploring the determinants of waste recycling is therefore of importance to policy makers. Current research in recycling has explored several important factors to assess household participation in recycling. The local community policy towards recycling is regarded as an important factor, as it can assist households in collecting recyclables as well as implementing innovative recycling programmes. In this paper we look again at the role of community in recycling by asking to what extent a region's degree of social coherence, measured as social capital, would influence its recycling rate. Using Taiwan as a case study we applied the fixed effect model in panel data analysis to estimate the impact of social capital on the regional recycling rate. The estimation shows that the elasticity of social capital to regional recycling rate is about 0.38ā0.43 at the 5% significance level. This provides evidence that a region's social relations are highly correlated with its recycling performance; a region's degree of social capital appears to increase its recycling rate. This finding implies that a successful recycling programme requires interactions between society and the environment. Enhancing a region's degree of social capital can also be incorporated as a part of that region's recycling programme. Copyright Ā© 2007 John Wiley & Sons, Ltd and ERP Environment.

Waste Recycling Policies Under Extended Producer Responsibility: Take-Back Mandate Versus Deposit-Refund
Global journal of economics, Jun 1, 2013
ABSTRACT Take-back mandate and deposit-refund are the most two established waste recycling polici... more ABSTRACT Take-back mandate and deposit-refund are the most two established waste recycling policies that are consistent with the extended producer responsibility (EPR) principle. In the take-back mandate, manufacturers have to achieve a mandatory recycling target set up by the authority. In the deposit-refund, manufacturers pay a waste disposal fee (or an output tax) to the authority, which then uses the fee to subsidize the recycling sector. This paper compares these two policies and finds that their relative performance in terms of recycling rate is crucially dependent on the recycling technological efficiency. The recycling rate is higher (lower) under the deposit-refund than the take-back mandate if recycling is relatively efficient (inefficient).
Will unitāpricing enhance recycling?
International Journal of Sustainable Development and World Ecology, Apr 29, 2009
ABSTRACT

RePEc: Research Papers in Economics, 2007
Waste recycling needs efforts at the local levels. This paper computes waste recycling efficiency... more Waste recycling needs efforts at the local levels. This paper computes waste recycling efficiency of twenty-nine sub-regions (including ten municipalities, seven towns, and twelve villages) from 2000 to 2004. Using Taipei County in Taiwan as a case study, we apply the data envelopment analysis (DEA) and consider three inputs (environmental protection expenditures, capitals and human resources on waste recycling) and two outputs (recycling rate and amount of recycled waste) in the DEA model. The average efficiency on waste recycling is deteriorating, showing much space for recycling performance improvement. The waste recycling efficiency and regional development represent a U-shape relationship. The local county government should assist its sub-region offices to update their waste recycling technologies and to design various waste recycling programs.

A Welfare Analysis on an Earmarked Deposit-Refund Recycling Policy
[[abstract]]Amongst the recycling policies that carry the property of extended producer responsib... more [[abstract]]Amongst the recycling policies that carry the property of extended producer responsibilities, deposit-refund (D-R) is recognized as an ideal policy as it can achieve a socially optimal outcome. In reality however, D-R often runs into a budget deficit. To correct for this void, we take the budget balance constraint into account in this paper, and re-examine the features of an earmarked D-R in recycling and output markets. Specifically, we investigate the circumstances under which a D-R runs into a budget deficit and examine the highest social welfare that an earmarked D-R can achieve. It is found that when recycling cost is relatively high, marginal environmental damage is mild, and the output market is competitive, the social welfare of an earmarked D-R is close to the social optimum. Under alternative conditions however, i.e., when recycling cost is low, marginal environmental damage is large, and output market is imperfect, it is more likely for a D-R to run into a financial deficit; this implies that the welfare of an earmarked D-R is less than the social optimum.[[notice]]č£ę£å®

The impact of social capital on regional waste recycling
Sustainable Development, 2008
Waste recycling is a prominent indicator of environmental sustainability in the pursuit of sustai... more Waste recycling is a prominent indicator of environmental sustainability in the pursuit of sustainable development. Exploring the determinants of waste recycling is therefore of importance to policy makers. Current research in recycling has explored several important factors to assess household participation in recycling. The local community policy towards recycling is regarded as an important factor, as it can assist households in collecting recyclables as well as implementing innovative recycling programmes. In this paper we look again at the role of community in recycling by asking to what extent a region's degree of social coherence, measured as social capital, would influence its recycling rate. Using Taiwan as a case study we applied the fixed effect model in panel data analysis to estimate the impact of social capital on the regional recycling rate. The estimation shows that the elasticity of social capital to regional recycling rate is about 0.38ā0.43 at the 5% significa...

Environmental and Resource Economics, 2014
It is generally held that trade liberalization results in less-stringent environmental regulation... more It is generally held that trade liberalization results in less-stringent environmental regulations, which suggests that policies regulating trade and the environment are positively correlated. This paper examines whether this monotonic relationship still holds true when pollution-reducing environmental research and development (ER&D) is undertaken by the home firm in a duopoly market. The link between tariffs and environmental taxes is examined under three possible scenarios-namely, when the home government has: (i) a tariff instrument only; (ii) an environmental tax instrument only; and (iii) both regulatory instruments, to correct for distortions relating to trade and the environment. We find that if it is not possible to abate pollution completely through ER&D, then the monotonic relationship between tariffs and environmental taxes is sustained. However, if it is possible to fully abate pollution through ER&D, then the optimal tariff (environmental tax) may not increase monotonically with taxes (tariffs). When both environmental taxes and tariffs are employed, these two policies may be strategic substitutes. A positive relationship between tariffs and environmental taxes may not be applicable.
The Role of Amenities and Quality of Life In Rural Economic Growth
American Journal of Agricultural Economics, 2001
A structural model of regional economic growth is estimated using data for 2243 rural U.S. counti... more A structural model of regional economic growth is estimated using data for 2243 rural U.S. counties. Five indices designed to capture specific amenity and quality of life characteristics are constructed using fiftyāfour separate indicators. Results suggest that amenity characteristics can be organized into consistent and meaningful empirical measures that move beyond ad hoc descriptions of amenities. In addition to insights into the influence of local characteristics ranging from tax burdens to income distribution on regional economic growth, results suggest that predictable relationships between amenities, quality of life, and local economic performance exist.
Can privatization be a catalyst for environmental R&D and result in a cleaner environment?
Resource and Energy Economics, 2016
In this paper we explore whether privatization helps to catalyze a firm's environmental resea... more In this paper we explore whether privatization helps to catalyze a firm's environmental research and development (ERD it can increase one but decrease the other firm's investment, or it may even lower both firmsā ER&D investments. Moreover, when production causes severe environmental damage, or the imposition of environmental taxes poorly internalize the pollution externality, privatization may result in a poorer environment. For the sake of having a cleaner environment, policy-makers can impose higher environmental taxes on a highly polluting industry when it is being privatized.
Community Blockade And Pollution Abatement
ABSTRACT
Strategic and Altruistic Corporate Environmental Responsibility in a Green Market
Will unitāpricing enhance recycling?
International Journal of Sustainable Development & World Ecology, 2009
ABSTRACT
Environmental Regulations and Competition Policy on Export Industries
We set up a two-country model in which a foreign firm chooses FDI or exporting to enter the host ... more We set up a two-country model in which a foreign firm chooses FDI or exporting to enter the host market, and plays a Cournot competition game with 11 host firms. Facing the host country's emission tax policy, all firms located in the host country use the same abatement technology to abate emissions. The major findings are as follows. When the trade cost is high and the abatement technology is efficient, a higher emission tax rate may encourage FDI. Moreover, under plausible parameters, raising the emission tax to drive the foreign firm out of the host country will be detrimental to environmental quality but raise consumer surplus in the host country. The interaction of the abatement technological efficiency and trade cost with emission tax plays a key role in the entry mode of the foreign firm and the associate welfare of the host country.
An Examination of the Wage Curve: A Research Note

Waste Recycling Efficiency in Sub-regions: A Case Study of Taipei County
Waste recycling needs efforts at the local levels. This paper computes waste recycling efficiency... more Waste recycling needs efforts at the local levels. This paper computes waste recycling efficiency of twenty-nine sub-regions (including ten municipalities, seven towns, and twelve villages) from 2000 to 2004. Using Taipei County in Taiwan as a case study, we apply the data envelopment analysis (DEA) and consider three inputs (environmental protection expenditures, capitals and human resources on waste recycling) and two outputs (recycling rate and amount of recycled waste) in the DEA model. The average efficiency on waste recycling is deteriorating, showing much space for recycling performance improvement. The waste recycling efficiency and regional development represent a U-shape relationship. The local county government should assist its sub-region offices to update their waste recycling technologies and to design various waste recycling programs.

Waste Recycling under Take-back and Tax/Subsidy Mechanisms
In the implementation of extended producer responsibility (EPR) principle on waste management, so... more In the implementation of extended producer responsibility (EPR) principle on waste management, some countries use a take-back mandate mechanism in which manufacturers bear responsibility to recycle their products till they reach a mandated recycling rate level. Other countries follow a tax/subsidy mechanism in which manufacturers pay an advance disposal fees; the government intervenes in transferring the payment received from manufacturers to subsidize the recycling sector. The purpose of this paper is to compare the relative performance of these two EPR mechanisms on the waste recycling rate. We found that when the recycling technology is relatively efficient, the recycling rate is higher under the tax/subsidy mechanism than the take back mandate mechanism. This result is reversed when the recycling technology becomes less efficient.
Waste Recycling Policies Under Extended Producer Responsibility: Take-Back Mandate Versus Deposit-Refund
Take-back mandate and deposit-refund are the most two established waste recycling policies that a... more Take-back mandate and deposit-refund are the most two established waste recycling policies that are consistent with the extended producer responsibility (EPR) principle. In the take-back mandate, manufacturers have to achieve a mandatory recycling target set up by the authority. In the deposit-refund, manufacturers pay a waste disposal fee (or an output tax) to the authority, which then uses the fee to subsidize the recycling sector. This paper compares these two policies and finds that their relative performance in terms of recycling rate is crucially dependent on the recycling technological efficiency. The recycling rate is higher (lower) under the deposit-refund than the take-back mandate if recycling is relatively efficient (inefficient).
American Journal of Agricultural Economics, 2001
A structural model of regional economic growth is estimated using data for 2243 rural U.S. counti... more A structural model of regional economic growth is estimated using data for 2243 rural U.S. counties. Five indices designed to capture specific amenity and quality of life characteristics are constructed using fifty-four separate indicators. Results suggest that amenity characteristics can be organized into consistent and meaningful empirical measures that move beyond ad hoc descriptions of amenities. In addition to insights into the influence of local characteristics ranging from tax burdens to income distribution on regional economic growth, results suggest that predictable relationships between amenities, quality of life, and local economic performance exist.
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Papers by Tsung-hsiu Tsai