VAT do you eat? Green consumption taxes and firms' market share

IF 3.4 2区 经济学 Q1 AGRICULTURAL ECONOMICS & POLICY
Kira Zerwer
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Abstract

This paper examines the role of a ‘green’ value-added tax in the competitive environment of firms. Using data on firms in Romania and leveraging the introduction of a tax reduction on organic products in 2019, I show that although the overall market for organic goods grows and potential to generate windfall profit exists, the market share of incumbent firms decreases because of intensified competition post-reform driven by new entrants competing for profits in the market. The market share decreases by about 2 percentage points after the reform. The effect depends on the relative elasticity of demand vis-à-vis supply in the market and the ability of a firm to protect its sales from new market entrants. Firms operating geographically further from the main consumer (i.e., more rural firms) and further upstream from the retail sector are more vulnerable to losing market share because urban demand is less elastic than rural demand and retail demand is less elastic than primary demand. Firms that are in markets where it is easier to switch from non-organic to organic and that are less capital intensive (i.e., have fewer fixed costs) are more vulnerable to losing market share to new market entrants.

你吃增值税吗?绿色消费税与企业的市场份额
本文探讨了 "绿色 "增值税在企业竞争环境中的作用。通过使用罗马尼亚企业的数据,并利用 2019 年对有机产品实行的减税政策,我发现尽管有机产品的整体市场在增长,并存在产生暴利的潜力,但由于改革后新进入者为争夺市场利润而导致竞争加剧,现有企业的市场份额有所下降。改革后,市场份额下降约 2 个百分点。这种影响取决于市场需求与供给的相对弹性,以及企业保护其销售不受新市场进入者影响的能力。由于城市需求的弹性低于农村需求,零售需求的弹性低于初级需求,因此,在地理位置上远离主要消费者(即更多的农村企业)和远离零售业上游的企业更容易失去市场份额。在市场上,从非有机产品转向有机产品比较容易,资本密集程度较低(即固定成本较少)的企业更容易被新进入市场的企业夺走市场份额。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Journal of Agricultural Economics
Journal of Agricultural Economics 管理科学-农业经济与政策
CiteScore
7.90
自引率
2.90%
发文量
48
审稿时长
>24 weeks
期刊介绍: Published on behalf of the Agricultural Economics Society, the Journal of Agricultural Economics is a leading international professional journal, providing a forum for research into agricultural economics and related disciplines such as statistics, marketing, business management, politics, history and sociology, and their application to issues in the agricultural, food, and related industries; rural communities, and the environment. Each issue of the JAE contains articles, notes and book reviews as well as information relating to the Agricultural Economics Society. Published 3 times a year, it is received by members and institutional subscribers in 69 countries. With contributions from leading international scholars, the JAE is a leading citation for agricultural economics and policy. Published articles either deal with new developments in research and methods of analysis, or apply existing methods and techniques to new problems and situations which are of general interest to the Journal’s international readership.
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