Environmental groups in monopolistic markets

Heijnen, Pim; Schoonbeek, Lambert

doi:10.1007/s10640-007-9131-6

Cited by 18 publications

(9 citation statements)

References 20 publications

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“…The idea of environmentalists conflicting with firms and how this antagonistic relationship can affect environmental quality and social welfare have already been investigated by a large strand of literature (see e.g., Friehe 2013; Sartzetakis et al 2012;Petrakis et al 2005;Heyes and Maxwell 2004;Liston-Heyes 2001). The present paper is closest to Heijnen and Schoonbeek (2008) who examine a market in which a monopolistic firm supplies an environmentally unfriendly good. They characterise the equilibrium of an entry deterrence game, where an EG can enter the market and set up a campaign to inform consumers about the environmental damage.…”

Section: Introductionmentioning

confidence: 88%

Green Alliances and the Role of Taxation

Stathopoulou

Gautier

2019

Environ Resource Econ

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We examine two alternative strategies that an environmental group can embark when interacting with a firm. The first one which is already discussed in the literature is when the group campaigns against the firm. The second one which has not been modelled in the literature is when the group collaborates with the firm (green alliance) to reduce the cost of the cleaner technology. We look at the case of both options being available for the group in a setting with an environmental tax. One of the main results of the paper argues that for higher taxation the conflict scenario is more likely to happen, implying that collaboration and a more stringent environmental policy are substitutes. This identifies a previously unexamined and possibly adverse effect of public policy on environmental quality because it weakens the impact of the pollution tax on emission intensity. We also characterise the optimal tax that maximises social welfare and find that under pure conflict -when conflict is the only option for the environmentalists-optimal tax is higher than when the group can choose to act against or join forces with the firm, indicating that a less stringent environmental policy is needed in the latter scenario.

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Section: Introductionmentioning

confidence: 88%

Green Alliances and the Role of Taxation

Stathopoulou

Gautier

2019

Environ Resource Econ

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“…The view that advertisement exhibits some degree of economies of scale is widely acceptable by both theoreticians and practitioners. 12 Moreover, in the most recent literature an S-shaped response function to advertisement has been used extensively (see for example Feinberg (2001)). The S-shaped response function implies increasing marginal returns to advertising for low advertising levels followed, after an inflection point, by decreasing marginal returns.…”

Section: The Modelmentioning

confidence: 99%

“…Moreover, the importance of information provision has been established by many studies in the case of public antismoking campaigns. 5 3 Liston-Heyes (2001), Heijnen and Schoonbeek (2008) and Heyes and Maxwell (2004) examine the role and the effectiveness of environmental groups in informing consumers. These works examine also the interplay between the environmental group and the polluting firms.…”

Section: Introductionmentioning

confidence: 99%

The Role of Information Provision as a Policy Instrument to Supplement Environmental Taxes: Empowering Consumers to Choose Optimally

2009

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The present paper examines, within a dynamic framework, the use of information provision as a policy instrument to supplement environmental taxation. We assume that at least a fraction of consumers do not posses the required information to make the optimal choices, and that their behavior at each time period depends on the accumulated stock of information. We show that, as the accumulated stock of information provision increases, both the optimal level of information provided at each period of time and the optimal tax rate decline over time. Our results provide strong evidence in support of information campaigns as a policy instrument to supplement traditional environmental policies. Information provision can shift the demand towards environmentally friendly products over time and thus, reduce the required level of the tax rate.

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“…In a further study, Junge et al (2011) found that complex landscapes, with mixed land use and a large proportion of wildflower field margins, are appreciated by Swiss residents and positively influence scenic beauty. Heijnen and Schoonbeek (2008) reported that environmental groups could influence consumer preferences through advertising campaigns: even though consumers are heterogeneous with respect to their disutility of the environmental damage caused by a product. Van der Made (2008) concluded that interest groups could influence consumer choice by disseminating information on production practices and thereby effectively introducing vertical product differentiation.…”

Section: Introductionmentioning

confidence: 99%

Public preferences for ecosystem-enhancing elements in agricultural landscapes in the Swiss lowlands

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Angelone

Hunziker

et al. 2014

Journal of Integrative Environmental Sciences

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As the world's population increases, settled areas expand, agricultural areas become more intensively managed, and ecosystems become increasingly fragmented as habitat elements are removed to make way for agricultural production. Reversal of fragmentation by enhancing ecosystem connectivity is a key step in halting biodiversity loss in agricultural areas. One way to decrease fragmentation is by maintaining habitat areas on farms and compensating farmers for the loss of the income that could have been earned if these areas were used for agricultural production. The implementation of ecological compensation schemes requires public funds, and governing bodies will only be willing to carry out this task if it is in accordance with the wishes of the public. This study sought to assess the attitudes of the public in Switzerland to ecosystem connectivity measures in rural areas, known as ecological compensation areas, and to measure whether attitudes could be influenced by the provision of ecological information. A revealed preference choice experiment was conducted using manipulated photographs of typical farmland, with various habitat elements added to an 'empty' agricultural landscape. Information treatments were given to half the respondents, while a control group received no further information. Approximately, half of the respondents showed no clear preferences for any particular landscapes. The remainder expressed preferences for more complex landscapes with half preferring landscapes containing ecosystem-connecting elements. This result challenges what has previously been considered to be an almost universal preference for complexity in landscapes. Provision of information was found to be not a significant influence on attitudes, although this result may be due to the complexity of the information that was delivered. Those seeking to influence landscape preferences, for example by reaching the disengaged majority, would be well advised to use simple emotional messages rather than complex ecological arguments.

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Environmental groups in monopolistic markets

Cited by 18 publications

References 20 publications

Green Alliances and the Role of Taxation

Green Alliances and the Role of Taxation

The Role of Information Provision as a Policy Instrument to Supplement Environmental Taxes: Empowering Consumers to Choose Optimally

Public preferences for ecosystem-enhancing elements in agricultural landscapes in the Swiss lowlands

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