E-commerce and Parcel Delivery: Environmental Policy with Green Consumers

Claire Borsenberger, Helmuth Cremer, Denis Joram, Jean-Marie Lozachmeur and Estelle Malavolti
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Claire Borsenberger: La Poste Groupe
Denis Joram: La Poste Groupe
Jean-Marie Lozachmeur: Toulouse School of Economics, CNRS and University of Toulouse Capitole
Estelle Malavolti: Toulouse School of Economics, ENAC

A chapter in Postal Strategies, 2023, pp 193-209 from Springer

Abstract: Abstract We study how consumers’ environmental awareness (CEA) affects the design of environmental policy in the e-commerce sector. We also examine if there is a need for regulation requiring delivery operators to reveal their emissions. We consider a model with two retailers who sell a differentiated product and two parcel delivery operators. Delivery generates CO2 emissions which create a global externality. We assume that less polluting technologies are more costly. We consider different scenarios reflecting the type of competition and the vertical structure of the industry. CEA mitigates the inefficiency of the equilibrium by bringing the level of emissions closer to its optimal level. This efficiency-enhancing effect of CEA also affects the design of emissions taxes, which leads to an amended Pigouvian rule. Under perfect competition, the tax is reduced by exactly the level of CEA expressed in monetary terms. Under imperfect competition, the adjustment exceeds this level.

Date: 2023
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Working Paper: E-commerce and parcel delivery: environmental policy with green consumers (2023)
Working Paper: E-commerce and parcel delivery: environmental policy with greens consumers (2023)
Working Paper: E-commerce and parcel delivery: environmental policy with greens consumers (2023)
Working Paper: E-commerce and parcel delivery: environmental policy with green consumers (2022)
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DOI: 10.1007/978-3-031-25362-1_15

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