Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/228807
Authors: 
Marini, Marco A.
Tarola, Ornella
Thisse, Jacques-François
Year of Publication: 
2020
Series/Report no.: 
Working Paper No. 031.2020
Abstract: 
We study how the supply of environmentalism, which is defined by psychic benefits (costs) associated with the purchase of high-environmental (low-environmental) qualities, a¤ects the way firms choose their products and the ensuing consequences for the global level of pollution. Contrary to general belief, a high supply of environmentalism does not give rise to a better environmental outcome because it endows firms with more market power which they use to maximize profits. By contrast, standard policy instruments such as a minimum quality standard or the use of greener technologies leads to a better ecological footprint.
Subjects: 
Environmentalism
Psychic Costs and Benefifits
Vertical Product Differentiation
Environmental Policy
JEL: 
D11
L13
Q50
Document Type: 
Working Paper

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