English, Article, Journal or magazine article edition: The Adverse Effects of Environmental Policy in Green Markets José L. Moraga; Noemí Padrón

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Bookmark: http://trove.nla.gov.au/version/112077
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The Adverse Effects of Environmental Policy in Green Markets
Author
  • José L. Moraga
  • Noemí Padrón
Physical Description
  • preprint
Notes
  • 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.
  • Emission standards, subsidies, product charges, vertically differentiated duopoly
  • RePEc:upf:upfgen:335
Language
  • English
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