Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/177615
Authors: 
Ceccantoni, Giulia
Tarola, Ornella
Vergari, Cecilia
Year of Publication: 
2017
Series/Report no.: 
Quaderni - Working Paper DSE 2005
Abstract: 
In this paper, under the assumption that green consumption has (at least partially) a social/psychological dimension, we analyse the effect of a carbon tax when it is imposed on consumers buying dirty products rather than on polluting firms. The amount of the tax paid is determined by the share of brown consumers in the market and the quality gap between variants. We show that this tax can abate emissions without inducing the undesirable relocation effect which can be observed in the case when a unilateral climate policy is imposed on polluting producers.
Subjects: 
Environmental quality
Vertical differentiation
Duopoly taxation
Consumer behaviour
JEL: 
H30
D43
Q5
L13
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

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