Effect of green network and emission tax on consumer choice under discrete continuous framework

Environmental Policies with Green Network Effect and Price Discrimination

“…As in Brécard (2013), we use the term green network e¤ ect to describe the fact that consumer satisfaction from buying the green variety is proportional to the market share of the green good. 11 Apart from Brécard (2013) and Grover and Bansal (2021), not much theoretical research has been carried out in this direction, even though recent studies acknowledge the importance of imitating the decisions of others. 12 A large body of theoretical literature followed Cremer and Thisse (1999) using models of vertical di¤erentiation to study the provision of environmental quality, under the assumption that the green good is of high quality and the brown good is of low quality (Moraga-Gonzales and Padron-Fumero, 2002;…”

Temporality of environmental policy and its effects on the location and abatement decision

“…One example is the case of [22], who studied a market for a homogeneous pollutant under an emissions tax. The main findings indicated that the implementation of a tax alone improves environmental quality [23] and the welfare of the sector under study [24], [25]. However, [26] showed that this increase is not sufficient to promote pollution reduction behavior among companies.…”