Network effects and environmental externalities: Do clean technologies suffer from excess inertia?

Mads Greaker and Kristoffer Midttømme

Journal of Public Economics, 2016, vol. 143, issue C, 27-38

Abstract: We study the diffusion of a clean substitute to a dirty durable in a dynamic model. Consumer utility of both durables increases in their respective market shares due to network effects.

Keywords: Network effects; Excess inertia; Environmental taxes; Technology lock-in (search for similar items in EconPapers)
JEL-codes: H23 Q55 Q58 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (25)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:143:y:2016:i:c:p:27-38

DOI: 10.1016/j.jpubeco.2016.08.004

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