Are Green Products Over-Priced?

Philippe Mahenc

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Abstract: This article investigates conditions under which high prices, in conjunction with low levels of pollution, signal environmentally clean products. It is shown that, when consumers cannot ascertain the environmental performance of products, the price must be distorted LERNA-INRA, Université Toulouse 1 and GEREM, Université de Perpignan. I wish to thank one anonymous referee for helpful comments.

Date: 2007
Note: View the original document on HAL open archive server: https://hal.science/hal-02080927v1
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Citations: View citations in EconPapers (16)

Published in Environmental and Resource Economics, 2007

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