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On information dissemination as an informal environmental regulation

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  • Jamalpuria, Aditi

Abstract

The paper analyzes the impact of environmental information dissemination by an information agent in a product market duopoly. The information agent performs the task of disseminating information regarding a green and a polluting firm's environmental profiles to consumers differing in their preferences for the two firms’ products. The result reveals that, in the absence of information dissemination, the green firm earns a lower market share which necessitates the information agent's intervention to encourage the consumption of green product. Moreover, complete information dissemination regarding the green firm's environmental profile is sufficient to generate a higher market share for the green firm. The paper also finds that an increase in information dissemination regarding either of the two firms’ environmental profiles decreases environmental damage accrued to the society and encourages a greener consumption pattern. An eco-efficiency drive is shown to be self-corrective as it negates the need for the informational intervention.

Suggested Citation

  • Jamalpuria, Aditi, 2013. "On information dissemination as an informal environmental regulation," Environment and Development Economics, Cambridge University Press, vol. 18(6), pages 749-772, December.
    • Handle: RePEc:cup:endeec:v:18:y:2013:i:06:p:749-772_00
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    Cited by:

    1. Li, Ge & Wen, Huwei, 2023. "The low-carbon effect of pursuing the honor of civilization? A quasi-experiment in Chinese cities," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 343-357.
    2. Jianshi Wang & Yu Cheng & Chengxin Wang, 2022. "Environmental Regulation, Scientific and Technological Innovation, and Industrial Structure Upgrading in the Yellow River Basin, China," IJERPH, MDPI, vol. 19(24), pages 1-17, December.
    3. Zhang, Hua & Xu, Tiantian & Feng, Chao, 2022. "Does public participation promote environmental efficiency? Evidence from a quasi-natural experiment of environmental information disclosure in China," Energy Economics, Elsevier, vol. 108(C).
    4. Fengyan Wang & Ziyuan Sun & Hua Feng, 2022. "Can Media Attention Promote Green Innovation of Chinese Enterprises? Regulatory Effect of Environmental Regulation and Green Finance," Sustainability, MDPI, vol. 14(17), pages 1-25, September.

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