Relative tax in a vertically differentiated market: the key role of consumers in environment

Ceccantoni, Giulia ; Tarola, Ornella ; Vergari, Cecilia (2017) Relative tax in a vertically differentiated market: the key role of consumers in environment. Bologna: Dipartimento di Scienze economiche DSE, p. 42. DOI 10.6092/unibo/amsacta/5571. In: Quaderni - Working Paper DSE (2005). ISSN 2282-6483.
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Abstract

In this paper, under the assumption that green consumption has (at least partially) a social/psychological dimension, we analyse the effect of a carbon tax when it is imposed on consumers buying dirty products rather than on polluting firms. The amount of the tax paid is determined by the share of brown consumers in the market and the quality gap between variants. We show that this tax can abate emissions without inducing the undesirable relocation effect which can be observed in the case when a unilateral climate policy is imposed on polluting producers.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Ceccantoni, GiuliaUniversità La Sapienza
Tarola, OrnellaUniversità La Sapienza0000-0001-9625-2621
Vergari, CeciliaUniversità di Bologna0000-0003-4585-984X
Keywords
Environmental quality, Vertical differentiation, Duopoly taxation, Consumer behaviour
Subjects
ISSN
2282-6483
DOI
Deposit date
22 May 2017 14:04
Last modified
07 Jun 2017 10:00
URI

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