Journal
JOURNAL OF CLEANER PRODUCTION
Volume 160, Issue -, Pages 71-82Publisher
ELSEVIER SCI LTD
DOI: 10.1016/j.jclepro.2017.01.110
Keywords
Relative preferences; Hedonic quality; Environmental quality; End-of-pipe technology; Cleaner technology
Ask authors/readers for more resources
In this paper we consider a vertically differentiated duopoly model in which a green producer competes with a brown rival in a market in which consumers are environmentally concerned. In particular, consumers are assumed to value not only the intrinsic quality of a certain product, but also its environmental impact. This environmental valuation has a positional content: consumers attach a positive attribute to the green product, while penalizing the brown one. In this context, we consider the choice of the green firm between cleaner and end-of-pipe abatement efforts. We find that the interplay between the intensity of market competition, consumers' income disparity and environmental concern can play a crucial role in directing the green producer towards one or the other technological choice. More precisely, the adoption of cleaner production technologies can be discouraged by low average income and by tough competition, while it can be spurred by the moral/social incentive towards pro-environmental behavior. (C) 2017 Elsevier Ltd. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available