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Green Markets and Private Provision of Public Goods

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Author Info
Matthew J. Kotchen
Abstract

This paper develops a general model of private provision of a public good that includes the option to consume an impure public good. The model is used to investigate the positive and normative consequences of "green markets," which are based on technologies with joint production of a private good and an environmental public good. It is shown that under reasonable conditions green markets can have beneficial or detrimental effects on environmental quality and social welfare. The analysis applies equally to nonenvironmental choice settings, with examples ranging from socially responsible investments to commercial activities associated with charitable fund-raising.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 114 (2006)
Issue (Month): 4 (August)
Pages: 816-845
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Handle: RePEc:ucp:jpolec:v:114:y:2006:i:4:p:816-845

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  1. MAHENC Philippe, 2008. "Optimal environmental taxation when green alternative is available," Working Papers 08.04.248, LERNA, University of Toulouse. [Downloadable!]
  2. MAHENC Philippe, 2008. "Introducing Greens Goods," Working Papers 08.03.247, LERNA, University of Toulouse. [Downloadable!]
  3. Matthew J. Kotchen, 2007. "Voluntary Provision of Public Goods for Bads: A Theory of Environmental Offsets," NBER Working Papers 13643, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Magali Delmas & Maria Montes-Sancho & Jay P. Shimshack, 2007. "Information Disclosure Policies: Evidence from the Electricity Industry," Discussion Papers Series, Department of Economics, Tufts University 0707, Department of Economics, Tufts University. [Downloadable!]
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This page was last updated on 2008-4-27.


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