The adverse effects of environmental policy in green markets

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Moraga, José L.; Padrón, Noemí. The adverse effects of environmental policy in green markets. 1998
To cite or link this document: Moraga, José L. Padrón, Noemí
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa 1998-11-01
dc.description.abstract We model green markets in which purchasers, either firms or consumers, have higher willingness-to-pay for less polluting goods. The effectiveness of pollution reduction policies is examined in a duopoly setting. We show that duopolists' strategic behaviour may increase pollution levels. Maximum emission standards, commonly used in green markets, improve the environmental features of products. Nonetheless, overall pollution levels will rise because government regulation also affects market shares and boots firms' sales. Consequently, social welfare may be reduced. We also explore the effects of technological subsidies and product charges, including differentiation of charges.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 335
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.title The adverse effects of environmental policy in green markets
dc.type info:eu-repo/semantics/workingPaper 2016-06-04T02:50:24Z
dc.subject.keyword Labour, Public, Development and Health Economics
dc.subject.keyword emission standards
dc.subject.keyword subsidies
dc.subject.keyword product charges
dc.subject.keyword vertically differentiated duopoly
dc.rights.accessRights info:eu-repo/semantics/openAccess

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