Emission Taxes and Standards When Products are Vertically Differentiated in Environment Quality

Chiara Lombardini

University of Helsinki, Department of Economics from Department of Economics

Abstract: Consumers' increased willingness to pay a price premium for greener products stimulates firms to compete in environmental regulations. This paper uses a model of vertical product differentiation to study how an emission tax affects environmental quality competition, aggregate emissions, and social welfare when there is overcompliance.

Keywords: EMISSION CONTROL; TAXATION; ENVIRONMENTAL PROTECTION (search for similar items in EconPapers)
JEL-codes: H21 L13 L15 Q28 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2001
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:fth:helsec:499

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