The Impact of Water Pollution Abatement on Competition and Pricing in the Alabama Textile Industry,

摘要

In order to access the impact of water pollution abatement on competition and pricing in the Alabama textile industry,three questions were answered. (1) How much is water pollution abatement costing the textile industry. (2) How is the intermediate consumer affected by these costs. (3) How is the ultimate consumer affected by the cost of water pollution control. Due to the competitive condition of the textile industry,all firms will absorb the cost of water pollution control. If a firm in the textile industry were to decide to pass on a cost increase to customers the firm could expect 30% of the customers to shift to either another domestic or a foreign supplier,at price increases of less then three%. At a price increase in excess of three%, a firm could expect 85% of its customers to shift to either another domestic or a foreign supplier. (Modified author abstract)