Consumers' Ecological Awareness, Environmental Regulation and MNCs¡¯ Choices in a Global Economy
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.
Volume (Year): 2 (2012)
Issue (Month): (May)
|Contact details of provider:|| Postal: |
Web page: http://www.bapress.ca
|Order Information:|| Postal: 17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada|
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)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.