Voting for environmental policy under income and preference heterogeneity

Anni Huhtala and Essi Eerola

No 11863, Discussion Papers from MTT Agrifood Research Finland

Abstract: We examine the design of policies for promoting the consumption of green products under preference and income heterogeneity using organic food products as an example. Two instruments are considered: a price subsidy for the organic food products and a tax on the conventional products. Under income disparity, consumers with high income always prefer a socially optimal subsidy to a socially optimal tax, while low-income consumers prefer a tax on conventional products. When environmental policy is determined by the median voter, the policies implemented tend to be stricter than socially optimal policies if income differences are large.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 21
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://ageconsearch.umn.edu/record/11863/files/dp050005.pdf (application/pdf)

Related works:
Journal Article: Voting for Environmental Policy Under Income and Preference Heterogeneity (2008)
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:ags:mttfdp:11863

DOI: 10.22004/ag.econ.11863

Access Statistics for this paper

More papers in Discussion Papers from MTT Agrifood Research Finland Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().