Spatial Models for Environmental Issues

Stefano Colombo ()
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Stefano Colombo: Università Cattolica del Sacro Cuore

Chapter Chapter 8 in Spatial Economic Modelling, 2025, pp 131-137 from Springer

Abstract: Abstract In this chapter, I use the Hotelling model to discuss environmental questions. First, I consider a model where a firm produces an environmentally friendly product, while the rival does not. The consumers are heterogeneous: some of them evaluate more the green product, while the others are indifferent. I show that the government can use taxation to stimulate the diffusion of the green product. Second, I consider a model where firms cannot locate in some zones of the linear city (“zoning regulation”). I derive the equilibrium locations and prices, and I discuss the implications of zoning on welfare.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-82787-7_8

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DOI: 10.1007/978-3-031-82787-7_8

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