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Emission Taxes and Standards When Products are Vertically Differentiated in Environment Quality

Author

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  • Lombardini-Riipinen, C.

Abstract

Consumers' increased willingness to pay a price premium for greener products stimulates firms to compete in environmental regulations. This paper uses a model of vertical product differentiation to study how an emission tax affects environmental quality competition, aggregate emissions, and social welfare when there is overcompliance.

Suggested Citation

  • Lombardini-Riipinen, C., 2001. "Emission Taxes and Standards When Products are Vertically Differentiated in Environment Quality," University of Helsinki, Department of Economics 499, Department of Economics.
  • Handle: RePEc:fth:helsec:499
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    Cited by:

    1. Klaus CONRAD, 2005. "Price Competition and Product Differentiation when Goods have Network Effects," Industrial Organization 0502002, University Library of Munich, Germany.

    More about this item

    Keywords

    EMISSION CONTROL ; TAXATION ; ENVIRONMENTAL PROTECTION;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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