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Autor:innen: 
Erscheinungsjahr: 
1997
Schriftenreihe/Nr.: 
Thünen-Series of Applied Economic Theory - Working Paper No. 06
Verlag: 
Universität Rostock, Institut für Volkswirtschaftslehre, Rostock
Zusammenfassung: 
Endogenous firm location is analyzed in a discrete two-region-two-firm model of product differentiation. In a non-cooperative game, two regional governments first decide on the imposition (or lifting) of domestic production standards; firms then choose technology (clean or polluting), location and price. Equilibrium quality and location structure are determined analytically. The existence of consumers willing to pay a premium on clean production methods, and the possibility of inter-firm pollution alleviate the tendency of firms to delocate into the region with the weaker regulation; then, a deregulatory race to the bottom is less likely.
Schlagwörter: 
environmental policy
product differentiation
firm location
institutional competi-tion
green preferences
JEL: 
H73
L13
Q28
Dokumentart: 
Working Paper

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