 The design of environmental policy for the olive oil sector in the presence of eco-friendly firmsLuis Gautier Economic Analysis and Policy, 2024, vol. 83, issue C, 95-117 Abstract: The olive oil sector in the European Union has recently exhibited an increase in the production of eco-friendly olive oil, which is consistent with the policy goals of increasing the production of eco-friendly products and addressing environmental degradation. Under current Common Agricultural Policy (CAP) 2023–2027 regulations, environmental policy in the European Union is predominantly of the command-and-control type with less emphasis on market-based policies. We study the design of environmental policy by comparing an emission tax (market-based policy) and a relative binding standard (command-and-control policy) in an industry where firms are transforming themselves into eco-friendly firms. We argue that an emission tax is a more flexible and efficient policy in this type of industry. Results underscore the role market-based environmental policies can play in promoting the European Union’s policy goals. Additionally, results are applicable to olive oil producers globally, but also other industries transitioning into the production of eco-friendly products. Keywords: Product differentiation; Emission tax; Olive oil; Eco-friendly (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:83:y:2024:i:c:p:95-117 DOI: 10.1016/j.eap.2024.05.021 Access Statistics for this article Economic Analysis and Policy is currently edited by Clevo Wilson More articles in Economic Analysis and Policy from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.