Design choices and environmental policies

Sophie Bernard

No 2016-01, Working Paper from Polytechnique Montreal, Groupe de recherche en Gestion et mondialisation de la technologie

Abstract: This paper studies the impact of environmental policies when firms can adjust product design as they see fit. In particular, it considers cross relationships between product design dimensions. For example, when products are designed to be more durable, this may add production steps and increase pollutant emissions during production. More generally, changes applied to one dimension can affect the cost or environmental performance of other dimensions. In this theoretical model, a firm interacts with consumers and a regulator. Before the production stage, the firm must choose the levels of three design dimensions: 1) energy performance during production, 2) energy performance during use, and 3) durability. Depending on the assumptions, the dimensions are said to be complementary, neutral, or competitive. The regulator can promote greener designs by applying targeted environmental taxes on emissions during production or consumption. The main results shed light on the consequences of modifying public policies. When some design dimensions are competitive, a targeted emission tax can result in environmental burden shifting, with an overall increase in pollution. This paper also explores the social optimum and the development of second-best policies when some policy instruments are imperfect. Under given conditions, a government would want to regulate and constraint the level of durability.

Keywords: green design; environmental policies; durability (search for similar items in EconPapers)
JEL-codes: L10 O13 Q53 Q55 Q58 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2016-05
New Economics Papers: this item is included in nep-ene, nep-env and nep-reg
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in

Downloads: (external link)
ftp://repec.polymtl.ca/epm/wpaper/2016-01Designchoices_SBernardGMT.pdf First version, 2016 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Failed to connect to FTP server repec.polymtl.ca: No such host is known.

Related works:
Working Paper: Design Choices and Environmental Policies (2016)
Working Paper: Design choices and environmental policies (2016)
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:epm:wpaper:2016-01

Access Statistics for this paper

More papers in Working Paper from Polytechnique Montreal, Groupe de recherche en Gestion et mondialisation de la technologie Contact information at EDIRC.
Bibliographic data for series maintained by Polytechnique Montreal ( this e-mail address is bad, please contact ).