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Consumers awareness and environmental policy in differentiated mixed oligopoly

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  • Hsu, Chu-Chuan
  • Lee, Jen-Yao
  • Wang, Leonard F.S.

Abstract

In this paper, we show that the implications of consumer awareness on environmental policy in both mixed and private oligopolies under regulated entry and free entry. The emission taxes are charged when the market imperfection and consumer cognition of pollution are low, while the consumption externality is substantial. However, when the consumers’ cognition of pollution damage is increasing and the consumers are willing to pay (WTP) less for the polluted good, the government should choose a lower emission tax.

Suggested Citation

  • Hsu, Chu-Chuan & Lee, Jen-Yao & Wang, Leonard F.S., 2017. "Consumers awareness and environmental policy in differentiated mixed oligopoly," International Review of Economics & Finance, Elsevier, vol. 51(C), pages 444-454.
    • Handle: RePEc:eee:reveco:v:51:y:2017:i:c:p:444-454
    DOI: 10.1016/j.iref.2017.07.001
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    Cited by:

    1. Xu, Lili & Lee, Sang-Ho, 2018. "The timing of environmental policies with excess burden of taxation in free-entry mixed markets," MPRA Paper 83560, University Library of Munich, Germany.
    2. Mariel Leal & Arturo Garcia & Sang-Ho Lee, 2019. "Excess Burden of Taxation and Environmental Policy Mix with a Consumer-Friendly Firm," The Japanese Economic Review, Springer, vol. 70(4), pages 517-536, December.
    3. Shihong Zeng & Yujia Qin & Guowang Zeng, 2019. "Impact of Corporate Environmental Responsibility on Investment Efficiency: The Moderating Roles of the Institutional Environment and Consumer Environmental Awareness," Sustainability, MDPI, vol. 11(17), pages 1-21, August.
    4. García, Arturo & Leal, Mariel & Lee, Sang-Ho, 2018. "Time-inconsistent environmental policies with a consumer-friendly firm: Tradable permits versus emission tax," International Review of Economics & Finance, Elsevier, vol. 58(C), pages 523-537.
    5. Xu, Lili & Lee, Sang-Ho, 2018. "Corporate Social Responsibility And Environmental Taxation With Endogenous Entry," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 59(2), pages 61-82, December.
    6. Xu, Lili & Lee, Sang-Ho, 2018. "Environmental policies with excess burden of taxation in free-entry mixed markets," International Review of Economics & Finance, Elsevier, vol. 58(C), pages 1-13.
    7. Agarwal, Richa & Bhadauria, Artee & Kaushik, Hans & Swami, Sanjeev & Rajwanshi, Rohit, 2023. "ISM-MICMAC-based study on key enablers in the adoption of solar renewable energy products in India," Technology in Society, Elsevier, vol. 75(C).
    8. Lisa Jacobson & Jonas Åkerman & Matteo Giusti & Avit K. Bhowmik, 2020. "Tipping to Staying on the Ground: Internalized Knowledge of Climate Change Crucial for Transformed Air Travel Behavior," Sustainability, MDPI, vol. 12(5), pages 1-18, March.
    9. Xia Wang & Tingting Tan & Mingqing Xing, 2022. "Environmental awareness of the private firm and optimal privatization in a mixed duopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 4055-4063, December.
    10. Lian, Xubei & Gong, Qiang & Wang, Leonard F.S., 2018. "Consumer awareness and ex-ante versus ex-post environmental policies revisited," International Review of Economics & Finance, Elsevier, vol. 55(C), pages 68-77.

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    More about this item

    Keywords

    Consumers awareness; Product differentiation; Environmental policies;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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