Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/313019 
Year of Publication: 
2025
Series/Report no.: 
BERG Working Paper Series No. 202
Publisher: 
Bamberg University, Bamberg Economic Research Group (BERG), Bamberg
Abstract: 
Consumers increasingly care about the environmental quality of the goods they consume. However, limited attention impairs consumers' ability to compare and evaluate the environmental quality of goods. I show that investments in environmental quality, consumer surplus, producer surplus, and welfare are non-monotonic functions of attention. Average environmental quality, consumer surplus, producer surplus, and welfare are highest under intermediate (but different) levels of atten-tion. In addition, limited attention influences the effectiveness of policy interventions. I identify conditions under which emission taxes, subsidies, information campaigns, and mandatory disclosure lead to less investments in environmental quality, more emissions, lower consumer surplus, or lower welfare.
Subjects: 
environmental quality
environmental policies
limited attention
JEL: 
D91
L13
Q55
Q58
ISBN: 
978-3-949224-23-2
Document Type: 
Working Paper

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