Arbeitspapier

Hedonic vs Environmental Quality: Which Policy Can Help in Lowering Pollution Emissions?

In this paper we compare two policy instruments that can be adopted to curb carbon emissions. The first is a conventional pollution tax. The second is an environmental campaign aiming to influence consumers to switch to a green good. We consider two different scenarios. When consumers are characterized by hedonic quality preferences, in this case the pollution tax is more efficient than the campaign. On the contrary, when consumers develop environmental quality preferences, there are cases in which the campaign is preferred. To sum up, while both policy instruments are effective in reducing pollution emissions, their efficiency viewed from a welfare perspective crucially depends on consumers' environmental awareness.

Language
Englisch

Bibliographic citation
Series: Quaderni - Working Paper DSE ; No. [906]

Classification
Wirtschaft
Externalities
Oligopoly and Other Imperfect Markets

Event
Geistige Schöpfung
(who)
Mantovani, Andrea
Vergari, Cecilia
Event
Veröffentlichung
(who)
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
(where)
Bologna
(when)
2013

DOI
doi:10.6092/unibo/amsacta/3830
Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Mantovani, Andrea
  • Vergari, Cecilia
  • Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)

Time of origin

  • 2013

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