# The Ambient Charge in Hyperbolic Duopoly and Triopoly: Static and Dynamic Analysis

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## Abstract

This paper presents a static and a dynamic model of an environmental policy of the ambient tax related to nonpoint source pollution that has many different sources. We apply the model to controllability by the ambient tax rate, showing that increasing the rate reduces the total level of the pollution. We also consider dynamic characteristics in the discrete time scales and numerically show the birth of complex dynamics via period-doubling bifurcation.

## Keywords

Nonpoint source pollution Ambient charge Hyperbolic price function Duopoly and triopoly Complex dynamics## References

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