scholarly journals The effects of taxes and subsidies on environmental qualities in a differentiated duopoly

Author(s):  
Paolo G. Garella

AbstractIn a horizontally differentiated duopoly, a green attribute (environmental quality) can be added to the products. Average green quality generates a positive externality entering the Government’s objective function (and possibly consumers’ utility). A tax on the “dirtiest” product decreases its environmental quality but it increases that of the cleaner rival enough to imply an average quality increase, achieving environmental protection. The same holds for a subsidy to production targeted to the cleanest producer. A generic quality-related subsidy also increases the positive externality, increases profits of the greenest and lowers those of the dirtiest producer. Education campaigns by the Government also increase average green quality.

2012 ◽  
pp. 29-41
Author(s):  
Grassi Iacopo

At least since Akerlof (1970), asymmetric information in the case of experience goods has been a central issue in the economic literature. This paper studies regulation in markets where the quality of the experience good is never completely verifiable by consumers even after purchase. In the proposed model firms can decide the quality of the good: always producing a high quality good creates a positive externality in the market, but it causes an incentive to the firms to deviate and produce low quality goods. The main policy instrument for the government, in order to maximize Social Welfare, is to fix a minimum quality standard, but imposing a too high standard might, in some cases, lower the average quality of the good in the market.


Water ◽  
2021 ◽  
Vol 13 (11) ◽  
pp. 1537
Author(s):  
Dong Wang ◽  
Kehong Wang ◽  
Yujing Chen

Consumers initiating returns online may produce secondary packaging, while most of the packages are produced by plastics. The more products are returned, the more plastics are used. Existing research indicates that the plastic packages can contribute to the micro-plastics pollution of the environment. As consumer environmental awareness (CEA) improves, more and more consumers are willing to pay extra fees to change the materials of packages from plastics to others in order to protect the environment, prompting enterprises to adjust to their return policies. In this context, this paper takes environmental quality improvement effort and the environmental coefficient as decision variables, and compares the manufacturer’s optimal decisions under with and without return policy. Our results show as follows: (1) There is a positive correlation between CEA and environmental quality improvement effort and the environmental coefficient; that is, environmental quality improvement effort and the environmental coefficient increase with an increase in CEA; (2) When CEA is high (k≤τ≤d), there is a threshold for manufacturers to invest in environmental effort. However, when CEA is low (0≤τ≤k), regardless of the return policy the manufacturer implements, its profit increases with the promotion of CEA, and when the manufacturer allows consumer returns, the relationship is more obvious; (3) The manufacturer should adopt an appropriate return policy according to the changes in CEA. When CEA is low (0≤τ≤k), the manufacturer should adopt a without return policy; when CEA is high (k≤τ≤d), the manufacturer should adopt a full refund (r=p) return policy, which is the optimal profit, and increase investment in environmental protection. From the above conclusions, we suggest that the government should increase the publicity of environmental protection, consumers should establish the awareness of green consumption, and enterprises should increase investment in environmental quality improvement to achieve sustainable development.


2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Tingliu Xu ◽  
Yingjie Xiao ◽  
Chatchai Khiewngamdee ◽  
Qin Lin

In the past few years, the marine ecosystem has been a cheap resource in developing countries in the process of pursuing short-term vested interests. Therefore, high economic development of the developing countries is at a huge environmental cost. Nowadays, environmental protection is becoming a global concern. In this background, the government of the developing countries begins to formulate reasonable marine economic and environmental policies to find a balance between rapid economic development and marine environmental protection. In this contribution, a dynamic stochastic general equilibrium model (DSGE) is constructed with the environmental constraints, and Bayesian estimation is used to calibrate the main parameters. Next, the model is employed to analyze the effects of government and consumer environmental preferences on macroeconomic variables, environmental quality, and consumer and government utility. Results show that the government’s preference for environmental quality is positively related to port environmental quality and negatively related to output, capital stock, and consumption. An enhancement of the environmental quality preference of the target audience can realize balanced development of economic growth and port environmental quality. The findings are conducive to coordinating the relationship between economic development and environmental protection and achieving sustainable development of the port.


1988 ◽  
Vol 20 (10) ◽  
pp. 57-62
Author(s):  
A. N. Aggarwal ◽  
V. K. Karia

Immediately after independence in 1946, the Government of India resorted to rapid industrialization to minimize outside dependence and to improve the standard of living. This, while helping the country to grow, also created problems of environmental management. Rapid deterioration of natural resources forced the Government to enact a number of legislative measures and create regulatory agencies both at central and state government levels. These agencies were given powers to effectively implement various Acts. Severe penalties, including fines and imprisonment, were envisaged for offenders of environmental Acts. Responsibilities were defined, to avoid a scapegoat approach. On the other hand, to reward industries showing a positive approach to environmental protection, a number of fiscal incentives and tax benefits were also offered. Recently, to provide more comprehensive legislation for the protection of all the components of the environment under a single agency, a new bill entitled the ‘Environmental Protection Bill, 1986' has been introduced in Parliament. This regulatory approach has started to show results, and more and more industries have started to provide pollution control facilities.


Author(s):  
Zhiru Guo ◽  
Chao Lu

This article selects the listed companies in China’s A-share heavy pollution industry from 2014 to 2018 as samples, uses a random effect model to empirically test the relationship between media attention and corporate environmental performance and examines the impacts of local government environmental protection and property nature on that relationship. Results are as follow: (1) Media attention can significantly affect a company’s environmental performance. The higher the media attention, the greater the company’s supervision and the better its environmental performance. (2) In areas where the government pays less attention to environmental protection, the impact of media on corporate environmental performance is more obvious, but in other areas, the impact of media on environmental performance cannot be reflected; (3) The media attention is very significant for the environmental performance improvement of state-owned enterprises, and it is not obvious in non-state-owned enterprises. (4) A further breakdown of the study found that the role of media attention in corporate environmental performance is only significant in the sample of local governments that have low environmental protection and are state-owned enterprises. This research incorporates the local government’s emphasis on environmental protection into the research field of vision, expands the research scope of media and corporate environmental performance, and also provides new clues and evidence for promoting the active fulfillment of environmental protection responsibilities by companies and local governments.


2020 ◽  
Vol 12 (5) ◽  
pp. 1781
Author(s):  
Yu-Chen Zhang ◽  
Deng-Kui Si ◽  
Bing Zhao

As the third-largest SO2 emitter in the world, China is facing mounting domestic and external pressure to tackle the increasingly serious SO2 pollution. Figuring out the convergence and persistence of sulfur dioxide (SO2) emissions matters much for environmental policymakers in China. This study mainly utilizes the Fourier quantile unit root test to survey the convergence of the SO2 emissions per capita in 74 cities of China during the period of December 2014 to June 2019, by conducting five traditional unit root tests and a quantile root unit test as a comparative analysis. The empirical results indicate that the SO2 emissions per capita in 72 out of 74 cities in China are convergent in the sample period. The results also suggest that the unit root behavior of the SO2 emissions per capita in these cities is asymmetrically persistent at different quantiles. For the cities with the convergent SO2 emissions, the government should consider the asymmetric mean-reverting pattern of SO2 emissions when implementing environmental protection policies at different stages. For Hefei and Nanjing, the local governments need to enact stricter environmental protection policies to control the emission of sulfur dioxide.


Author(s):  
Tô Thị Kim Hồng ◽  
Trần Thị Diễm Thúy

Nowadays, environmental protection is an urgent problem which raises top concerns. Besides, green consumption is a trend encouraged to be widely implemented in many countries in the world, including Vietnam. However, in the reality of Vietnam, changing green consumer behavior in choosing products has been negligible and insignificant. With a diversified and varied population structure, Ho Chi Minh City is selected to analyze the impacts of demography and other related factors on green consumption behavior in the market. The quantitative research method is mainly used with the analysis of multiple correlation and linear regression. The results retrieved from 312 survey samples show that regarding demography, educational level, and marital status influence green consumption behavior. Besides, the results also show and measure the impacts of other factors, namely attitudes, subjective standards, environmental concerns, unavailability of green products on the green consumption behavior of consumers in Ho Chi Minh city. With the aim at promoting green consumer behavior in Ho Chi Minh City, there is a need for a change requiring the cooperation of all the Government, Enterprises, and consumers in stepping up propaganda, raising public awareness; simultaneously, orienting economic development activities associated with sustainable environmental protection.


Author(s):  
Daniela CIUPEANU CĂLUGĂRU

For turning to a high degree of favorability of sludge from wastewater treatment plants, currently the reintroduction in the natural circuit of this waste is an urgent priority. Knowing precisely the composition of chemical and biological sludge from waste water in accordance with the law and the rules of their application, along with modern wastewater treatment appropriate technologies play a key role on environmental protection. Involvement by precise rules, the content of heavy metals in relation to the maximum permitted by law, translate in to particularly advantageous results in terms of environmental quality.


2008 ◽  
Vol 4 (2) ◽  
pp. 211-223 ◽  
Author(s):  
Jay B. Barney ◽  
Shujun Zhang

Company brands signify a message to consumers about the quality and value of a product. Countries can also be branded. However, unlike the brands of individual firms, country brands are collective goods. The nature of country brands creates the possibility of free riding, where individual firms benefit – in terms of price or access – from the promise made by a country brand but deliver at a level lower than what is promised by the brand. Such free riding threatens the stability of what the country brand represents unless legal, governmental, or other institutions engage in activities to reduce these adverse effects. In this paper, we investigate the Chinese brand – once standing for average quality at a low price – in the light of recent recalls. We examine how country brands emerge and the incentives that firms operating in a country have to either support or not support a country brand. We also explore the implications of diese incentives for the role of various institutions, including the government, in developing, maintaining and changing a country brand and in developing and enforcing the policies, such as protection of intellectual property, necessary to support firms' efforts toward reinforcing a trusted country brand.


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