Green Consumers, Greenwashing and the Misperception of Environmental Quality

Lambertini, Luca ; Pignataro, Giuseppe ; Tampieri, Alessandro (2014) Green Consumers, Greenwashing and the Misperception of Environmental Quality. Bologna: Dipartimento di Scienze economiche DSE, p. 25. DOI 10.6092/unibo/amsacta/4062. In: Quaderni - Working Paper DSE (958). ISSN 2282-6483.
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Abstract

In this paper we analyse a setup where consumers are heterogeneous in the perception of environmental quality. The equilibrium is verified in a setting with horizontal and vertical (green) differentiation. Profits are increasing in the misperception of quality, while, the investment in green quality decreases the more the goods are substitutes. We further consider the introduction of either an emission tax or an environmental standard. The former rises the investment in environmental quality due to the higher cost of production, whereas in equilibrium quality always improves after the introduction of the latter. We show that an optimal environmental standard is an effective regulatory instrument against greenwashing and that the efficacy of the interventions is conditioned to the damage distribution and the aggregate level of emission.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Lambertini, Luca
Pignataro, Giuseppe
Tampieri, Alessandro
Keywords
Green quality, Misperception, Pigouvian taxation, Environmental Standard
Subjects
ISSN
2282-6483
DOI
Deposit date
26 Aug 2014 08:07
Last modified
24 Feb 2016 08:59
URI

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