Pollution Abatement Strategy and the Dichotomy of “Green” Versus “Non-green” Products: A New Analytical Insight

Jules-Eric Tchapchet Tchouto, Gérard Duthil (), Luc Savard and Romaine Doline Ngo Nguéda Radler ()
Additional contact information
Gérard Duthil: Université de Rouen
Romaine Doline Ngo Nguéda Radler: University of Dschang

Journal of the Knowledge Economy, 2023, vol. 14, issue 3, No 12, 2362 pages

Abstract: Abstract This paper shows how a strategy of reducing greenhouse gas emissions combined with economic cycles can lead to particular consumption behaviours. We are assuming the existence of an “economic” demand for “non-green” goods and a “social” demand for “green” goods. We are also assuming the existence of a dispersion of household characteristics organised around an average profile in each class. In times of sustained economic recession, incomes of individual agents fall. Therefore, the budgetary constraint becomes stronger, and falling incomes will have a negative impact on the demand for “green” goods. Consumers with higher incomes will reduce their demand for “green” goods, creating pressure on prices and quantities. As consumers abandon the “green” goods market, they will switch to the “non-green” goods market, especially as prices are lower there, which will stimulate demand and create a new upward pressure on the demand for “non-green” goods.

Keywords: Green and non-green products; Dual markets; Demand and supply behaviours; Economics cycles and situations; Distributional impacts; Computable General Equilibrium modelling; Tradable Emissions permits; C68; D12; H23; Q11; Q52 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s13132-022-00929-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
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:spr:jknowl:v:14:y:2023:i:3:d:10.1007_s13132-022-00929-8

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132

DOI: 10.1007/s13132-022-00929-8

Access Statistics for this article

Journal of the Knowledge Economy is currently edited by Elias G. Carayannis

More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().