Arbeitspapier

Pollution, green union and network industry

In this paper the authors investigate whether and how, in a network industry, the intensity of network effects affect the total pollution under the presence of a union interested to "local" environmental damages (e.g. polluting production processes damaging workers' health and the local environment where workers live). Under monopoly, it is shown that network effects tend to increase, on the one hand, the investments in the cleaning technology but, on the other hand, the polluting output, so that their effects on the total pollution are theoretically ambiguous. In particular, the authors find that total pollution is reduced (resp. increased) with increasing network effects intensity if the market is sufficiently large (resp. small). Moreover the pollution-reducing result of the increasing network effect is more likely when the existing network effects, the union's environmental concerns and the technological efficiency are sufficiently large. These findings are qualitatively confirmed also under different union's preferences, Government's environmental standard and Cournot duopoly, and thus offer interesting empirical as well as policy implications.

Sprache
Englisch

Erschienen in
Series: Economics Discussion Papers ; No. 2018-40

Klassifikation
Wirtschaft
Trade Unions: Objectives, Structure, and Effects
Monopoly; Monopolization Strategies
Thema
network goods
cleaning technology
pollution production
green unions
monopoly
Cournot duopoly

Ereignis
Geistige Schöpfung
(wer)
Fanti, Luciano
Buccella, Domenico
Ereignis
Veröffentlichung
(wer)
Kiel Institute for the World Economy (IfW)
(wo)
Kiel
(wann)
2018

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Fanti, Luciano
  • Buccella, Domenico
  • Kiel Institute for the World Economy (IfW)

Entstanden

  • 2018

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