IDEAS home Printed from https://ideas.repec.org/a/bap/journl/120202.html
   My bibliography  Save this article

Consumers' Ecological Awareness, Environmental Regulation and MNCs' Choices in a Global Economy

Author

Listed:
  • Fabrice Darrigues

    () (CATT, Universit¨¦ de Pau, France)

  • Jean-Marc Montaud

    () (CATT, Universit¨¦ de Pau, France)

Abstract

Using a monopolistic competition model with mobile capital, in which firms may choose between ¡°dirty¡± or ¡°clean¡± technology, this paper investigates the relationship between the environment, trade liberalization, and the geographical and technical choices of multinational firms. Simulation results show that beyond environmental regulations, the ecological sensitivity of consumers can serve as a market mechanism that urges firms to self-regulate. In particular, local sensitivity to environmental issues amplifies the ¡°pollution haven¡± phenomenon, as induced by an environmental tax, whereas a more comprehensive environmental awareness attenuates or cancels this phenomenon gradually as liberalization progresses.

Suggested Citation

  • Fabrice Darrigues & Jean-Marc Montaud, 2012. "Consumers' Ecological Awareness, Environmental Regulation and MNCs' Choices in a Global Economy," Review of Economics & Finance, Better Advances Press, Canada, vol. 2, pages 15-29, May.
  • Handle: RePEc:bap:journl:120202
    as

    Download full text from publisher

    File URL: http://www.bapress.ca/Journal-7/1923-7529-2012-02-15-15.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:ebl:ecbull:eb-17-00941 is not listed on IDEAS

    More about this item

    Keywords

    Trade; Monopolistic competition; Environmental performance; Location and economic geography; Environmental awareness;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bap:journl:120202. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carlson). General contact details of provider: http://www.bapress.ca .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.