Arbeitspapier

Environmental Policy, Firm Location, And Product Differentiation: The Role of Green Preferences and Inter-firm Pollution

Endogenous firm location is analyzed in a discrete two-region-two-firm model of product differentiation. In a non-cooperative game, two regional governments first decide on the imposition (or lifting) of domestic production standards; firms then choose technology (clean or polluting), location and price. Equilibrium quality and location structure are determined analytically. The existence of consumers willing to pay a premium on clean production methods, and the possibility of inter-firm pollution alleviate the tendency of firms to delocate into the region with the weaker regulation; then, a deregulatory race to the bottom is less likely.

Sprache
Englisch

Erschienen in
Series: Thünen-Series of Applied Economic Theory - Working Paper ; No. 06

Klassifikation
Wirtschaft
State and Local Government; Intergovernmental Relations: Interjurisdictional Differentials and Their Effects
Oligopoly and Other Imperfect Markets
Renewable Resources and Conservation: Government Policy
Thema
environmental policy
product differentiation
firm location
institutional competi-tion
green preferences
Umweltpolitik
Standortwettbewerb
Standorttheorie
Produktdifferenzierung
Duopol
Spieltheorie
Umweltbewusstsein
Willingness to pay
Theorie

Ereignis
Geistige Schöpfung
(wer)
Kuhn, Michael
Ereignis
Veröffentlichung
(wer)
Universität Rostock, Institut für Volkswirtschaftslehre
(wo)
Rostock
(wann)
1997

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Kuhn, Michael
  • Universität Rostock, Institut für Volkswirtschaftslehre

Entstanden

  • 1997

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