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The Environmental Impact of Internet Regulation

Author

Listed:
  • Jean-Christophe Poudou

    (MRE - Montpellier Recherche en Economie - UM - Université de Montpellier)

  • Wilfried Sand-Zantman

    (ESSEC Business School and THEMA (UMR 8184) - ESSEC Business School - THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université)

Abstract

We address the need to regulate Internet infrastructure usage to take into account environmental externalities. We model the interactions between a monopoly ISP and different types of content providers in settings where the former chooses the network size and the latter influences congestion on the network. We first show that current net neutrality regulation does not provide agents the right incentives to cope with the environmental externality issue. Then, we study several alternatives, including laissez-faire, price-based regulation, and norm-based regulation. We derive conditions under which these alternatives fare better than net neutrality. In particular, the two types of regulations are useful tools to accommodate consumer interest and environmental concerns.

Suggested Citation

  • Jean-Christophe Poudou & Wilfried Sand-Zantman, 2022. "The Environmental Impact of Internet Regulation," Working Papers hal-03608708, HAL.
    • Handle: RePEc:hal:wpaper:hal-03608708
    Note: View the original document on HAL open archive server: https://hal.umontpellier.fr/hal-03608708v1
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    References listed on IDEAS

    as
    1. Marc Bourreau & Frago Kourandi & Tommaso Valletti, 2015. "Net Neutrality with Competing Internet Platforms," Journal of Industrial Economics, Wiley Blackwell, vol. 63(1), pages 30-73, March.
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    More about this item

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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