Promoting green or restricting gray? An analysis of green portfolio standards

Hiroaki Ino and Toshihiro Matsumura

Economics Letters, 2021, vol. 198, issue C

Abstract: This study theoretically examines green portfolio standards with monetary penalties in an oligopoly market. We find that green portfolio standards attain first-best optimality if the purpose of the government is to restrict non-green products (i.e., unless the negative externality of gray products is too small), whereas they are inefficient policy tools if the purpose is to promote green products.

Keywords: Green industrial policy; Negative externality of gray products; Positive externality of green products; Renewable portfolio standards; Zero emission vehicle program; Employment promotion program (search for similar items in EconPapers)
JEL-codes: L51 Q48 Q58 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176520304109
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Promoting Green or Restricting Gray? An Analysis of Green Portfolio Standards (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:198:y:2021:i:c:s0165176520304109

DOI: 10.1016/j.econlet.2020.109650

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().