Information Provision in Environmental Policy Design

Vera Danilina and Alexander Grigoriev

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Abstract: Information provision is a relatively recent but steadily growing environmental policy tool. Its emergency and topicality are due to the current escalation of ecological threats. Meanwhile, its high complexity and flexibility require a comprehensive approach to its design, which has to be tailored for specific characteristics of production process, market structure, and regulatory goals. This work proposes such an approach and builds a framework based on a three-level mathematical program extending well-known two-level Stackelberg game by introducing one more economic agent and one extra level of this sequential game. This study provides simple and very intuitive algorithms to compute optimal multi-tier information provision policies, both mandatory and voluntary. The paper urges for the wide implementation of such efficient environmental policy design tools.

Keywords: stackelberg game; multi-level mathematical programming; exact algorithms; environmental policy; information provision; eco-certification; eco-labelling (search for similar items in EconPapers)
Date: 2020-09
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Citations: View citations in EconPapers (4)

Published in Journal of Environmental Informatics, 2020, 36 (1), pp.1-10. ⟨10.3808/jei.201900410⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02110860

DOI: 10.3808/jei.201900410

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