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The environmental impact of Internet regulation
[L'impact environnemental de la réglementation de l'internet]

Author

Listed:
  • Jean-Christophe Poudou

    (MRE - Montpellier Recherche en Economie - UM - Université de Montpellier, MRE - Montpellier Recherche en Economie - UM - Université de Montpellier)

  • Wilfried Sand-Zantman

    (ESSEC Business School and THEMA (UMR 8184) - ESSEC Business School - THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université)

Abstract

We address the need to regulate Internet infrastructure usage to take into account environmental externalities. We model the interactions between an internet service provider and some content providers in settings where the former chooses the network size and the latter influence congestion on the network. We then discuss how different regulatory frameworks (Net Neutrality, Laissez-Faire, Price Regulation) impact both the economic efficiency and the environmental performance. In particular, we highlight that inducing more efficiency effort from the content providers may either improve or worsen the final environmental outcome, and provide some conditions for one case or the other to prevail.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jean-Christophe Poudou & Wilfried Sand-Zantman, 2023. "The environmental impact of Internet regulation [L'impact environnemental de la réglementation de l'internet]," Post-Print hal-04297742, HAL.
    • Handle: RePEc:hal:journl:hal-04297742
    DOI: 10.1016/j.infoecopol.2023.101060
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    References listed on IDEAS

    as
    1. Marc Bourreau & Frago Kourandi & Tommaso Valletti, 2015. "Net Neutrality with Competing Internet Platforms," Journal of Industrial Economics, Wiley Blackwell, vol. 63(1), pages 30-73, March.
    2. Peitz, Martin & Schuett, Florian, 2016. "Net neutrality and inflation of traffic," International Journal of Industrial Organization, Elsevier, vol. 46(C), pages 16-62.
    3. Jay Pil Choi & Byung‐Cheol Kim, 2010. "Net neutrality and investment incentives," RAND Journal of Economics, RAND Corporation, vol. 41(3), pages 446-471, September.
    4. Jullien, Bruno & Sand-Zantman, Wilfried, 2018. "Internet regulation, two-sided pricing, and sponsored data," International Journal of Industrial Organization, Elsevier, vol. 58(C), pages 31-62.
    5. Browning, Edgar K, 1976. "The Marginal Cost of Public Funds," Journal of Political Economy, University of Chicago Press, vol. 84(2), pages 283-298, April.
    6. Choi, Jay Pil & Jeon, Doh-Shin & Kim, Byung-Cheol, 2014. "Net neutrality, Network capacity and Innovation at the Edges," TSE Working Papers 14-521, Toulouse School of Economics (TSE), revised Jul 2017.
    7. Jay Pil Choi & Doh†Shin Jeon & Byung†Cheol Kim, 2018. "Net Neutrality, Network Capacity, and Innovation at the Edges," Journal of Industrial Economics, Wiley Blackwell, vol. 66(1), pages 172-204, March.
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    More about this item

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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