IDEAS home Printed from https://ideas.repec.org/p/kgu/wpaper/58.html
   My bibliography  Save this paper

Unilateral Emission Standards, Quality of Vertically Differentiated Products, and the Global Environment

Author

Listed:
  • Keisaku Higahsida

    () (School of Economics, Kwansei Gakuin University)

  • Tsuyoshi Toshimitsu

    () (School of Economics, Kwansei Gakuin University)

Abstract

Employing an environmentally-differentiated products model with heterogeneous consumers in terms of environmental consciousness, this paper examines the effect of a unilateral change in a home emission standard on the qualities of products, aggregate emissions, and welfare of both home and foreign countries. When firms compete with each other in a Cournot fashion, as the home emission standard becomes stricter, aggregate emissions of both domestic and foreign countries decrease, if a firm which produces a gdirtier product h f supplies the same product to both domestic and foreign markets. On the other hand, if the firm supplies different products in environmental features to different markets, a stricter emission standard by the home government increases aggregate emissions of the foreign country. Even in the Bertrand duopoly case, the effects of a stricter emission standard on both countries could be different from each other.

Suggested Citation

  • Keisaku Higahsida & Tsuyoshi Toshimitsu, 2010. "Unilateral Emission Standards, Quality of Vertically Differentiated Products, and the Global Environment," Discussion Paper Series 58, School of Economics, Kwansei Gakuin University, revised Jul 2010.
  • Handle: RePEc:kgu:wpaper:58
    as

    Download full text from publisher

    File URL: http://192.218.163.163/RePEc/pdf/kgdp58.pdf
    File Function: First version, 2010
    Download Restriction: no

    References listed on IDEAS

    as
    1. José Moraga-González & Noemi Padrón-Fumero, 2002. "Environmental Policy in a Green Market," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(3), pages 419-447, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    emission standards; international duopoly; environmentally differentiated products;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kgu:wpaper:58. 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: (Toshihiro Okada) or (Rebekah McClure). General contact details of provider: http://edirc.repec.org/data/dekgujp.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.