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Network effects and environmental externalities: Do clean technologies suffer from excess inertia?

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  • Greaker, Mads
  • Midttømme, Kristoffer

Abstract

We study the diffusion of a clean substitute to a dirty durable in a dynamic model. Consumer utility of both durables increases in their respective market shares due to network effects.

Suggested Citation

  • Greaker, Mads & Midttømme, Kristoffer, 2016. "Network effects and environmental externalities: Do clean technologies suffer from excess inertia?," Journal of Public Economics, Elsevier, vol. 143(C), pages 27-38.
    • Handle: RePEc:eee:pubeco:v:143:y:2016:i:c:p:27-38
    DOI: 10.1016/j.jpubeco.2016.08.004
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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