Environmental Degradation and the Limits to LOV

Yu-Fu Chen, Hassan Molana and Catia Montagna

No 2010-30, SIRE Discussion Papers from Scottish Institute for Research in Economics (SIRE)

Abstract: We show how consumers’ environmental concerns may limit ‘love of variety’ (LOV) and be reflected in consumers decisions. We investigate how the impact of environmental degradation on LOV influences demand and optimal product variety, and how a pollution tax on firms might be used to improve upon the market outcome and increase welfare.

Keywords: Environmental degradation; love-of-variety; environmental policy (search for similar items in EconPapers)
Date: 2010
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Working Paper: Environmental Degradation and the Limits to LOV (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:edn:sirdps:162

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