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E-commerce and Parcel Delivery: Environmental Policy with Green Consumers

In: Postal Strategies

Author

Listed:
  • Claire Borsenberger

    (La Poste Groupe)

  • Helmuth Cremer

    (Toulouse School of Economics, University of Toulouse Capitole)

  • Denis Joram

    (La Poste Groupe)

  • Jean-Marie Lozachmeur

    (Toulouse School of Economics, CNRS and University of Toulouse Capitole)

  • Estelle Malavolti

    (Toulouse School of Economics, ENAC)

Abstract

We study how consumers’ environmental awareness (CEA) affects the design of environmental policy in the e-commerce sector. We also examine if there is a need for regulation requiring delivery operators to reveal their emissions. We consider a model with two retailers who sell a differentiated product and two parcel delivery operators. Delivery generates CO2 emissions which create a global externality. We assume that less polluting technologies are more costly. We consider different scenarios reflecting the type of competition and the vertical structure of the industry. CEA mitigates the inefficiency of the equilibrium by bringing the level of emissions closer to its optimal level. This efficiency-enhancing effect of CEA also affects the design of emissions taxes, which leads to an amended Pigouvian rule. Under perfect competition, the tax is reduced by exactly the level of CEA expressed in monetary terms. Under imperfect competition, the adjustment exceeds this level.

Suggested Citation

  • Claire Borsenberger & Helmuth Cremer & Denis Joram & Jean-Marie Lozachmeur & Estelle Malavolti, 2023. "E-commerce and Parcel Delivery: Environmental Policy with Green Consumers," Topics in Regulatory Economics and Policy, in: Pier Luigi Parcu & Timothy J. Brennan & Victor Glass (ed.), Postal Strategies, pages 193-209, Springer.
    • Handle: RePEc:spr:topchp:978-3-031-25362-1_15
    DOI: 10.1007/978-3-031-25362-1_15
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    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L87 - Industrial Organization - - Industry Studies: Services - - - Postal and Delivery Services

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