The economics of Green consumption, cultural transmission and sustainable technological change

Emeline Bezin ()
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Emeline Bezin: PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: A model which formalizes the interplay between green consumer culture and sustainable technology is used to revisit the trade-off between economic growth and environmental preservation. The theory includes (i) green preferences formed through cultural transmission which involves rational socialization actions, (ii) innovation endogenously directed to sustainable or unsustainable sectors depending on culture through market size effects. The model captures an important feature of sustainable innovation processes which is the existence of path dependency. The approach allows to examine implications for both market-based instruments (i.e., environmental taxes) and non-monetary interventions (i.e., environmental education). The two types of policies are either complements or substitutes depending on the substitutability between clean and dirty goods. Finally, an important disregarded issue is examined: the political sustainability of environmental taxes.

Date: 2019
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02087970v1
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Published in Journal of Economic Theory, 2019, 184, pp.497-546. ⟨10.1016/j.jet.2019.03.005⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-02087970

DOI: 10.1016/j.jet.2019.03.005

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