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The environmental impact of Internet regulation

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  • Poudou, Jean-Christophe
  • Sand-Zantman, Wilfried

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.

Suggested Citation

  • Poudou, Jean-Christophe & Sand-Zantman, Wilfried, 2023. "The environmental impact of Internet regulation," Information Economics and Policy, Elsevier, vol. 65(C).
    • Handle: RePEc:eee:iepoli:v:65:y:2023:i:c:s0167624523000458
    DOI: 10.1016/j.infoecopol.2023.101060
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    More about this item

    Keywords

    Carbon emission; Environmental externalities; Investment; Net neutrality; Regulation;
    All these keywords.

    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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