Is Environmentalism the Right Strategy to Decarbonize the World?

Marco Marini, Ornella Tarola and Jacques Thisse

No 308106, 2030 Agenda from Fondazione Eni Enrico Mattei (FEEM)

Abstract: We study how the supply of environmentalism, which is de ned by psychic bene ts (costs) associated with the purchase of high-environmental (low-environmental) qualities, a¤ects the way rms choose their products and the ensuing consequences for the global level of pollution. Contrary to general belief, a high supply of environmentalism does not give rise to a better environmental outcome because it endows rms with more market power which they use to maximize pro ts. By contrast, standard policy instruments such as a minimum quality standard or the use of greener technologies leads to a better ecological footprint.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 48
Date: 2020-12-22
New Economics Papers: this item is included in nep-ene and nep-env
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Citations: View citations in EconPapers (3)

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https://ageconsearch.umn.edu/record/308106/files/NDL2020-31.pdf (application/pdf)

Related works:
Working Paper: Is Environmentalism the Right Strategy to Decarbonize the World? (2021)
Working Paper: Is Environmentalism the Right Strategy to Decarbonize the World? (2020)
Working Paper: Is Environmentalism the Right Strategy to Decarbonize the World? (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:feemgc:308106

DOI: 10.22004/ag.econ.308106

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