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On the effect of social norms to reduce pollution

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  • A. Mantovani
  • O. Tarola
  • C. Vergari

Abstract

We analyse how market competition in a vertically differentiated polluting industry is affected by product variants that comply at different levels with "green" social norms. A green consumption behaviour is considered as a byword of good citizenship. Consumer preferences depend on a combination of hedonic quality and compliance with the norms. Assuming that the high hedonic quality variant complies less with the norms than the low hedonic quality one, we characterize the different equilibrium configurations, depending on the perceived intensity of such norms. Then, we focus on the role that institutions may have in using these norms to reduce pollution emissions.

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Paper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number wp950.

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Date of creation: Jun 2014
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Handle: RePEc:bol:bodewp:wp950

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  20. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, Elsevier, vol. 95(9), pages 1082-1095.
  21. Eftichios Sartzetakis & Anastasios Xepapadeas & Emmanuel Petrakis, 2012. "The Role of Information Provision as a Policy Instrument to Supplement Environmental Taxes," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 52(3), pages 347-368, July.
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