Good and bad increases in ecological awareness: environmental differentiation revisited
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Títol
Good and bad increases in ecological awareness: environmental differentiation revisitedData de publicació
2011Editor
Now PublishersISSN
1944-012X; 1944-0138Cita bibliogràfica
Strategic Behavior and the Environment (2011), vol. 1, no 1, 71-88Tipus de document
info:eu-repo/semantics/articleVersió de l'editorial
http://www.sbejournal.com/journal.aspx?product=SBE&doi=102.00000001Versió
info:eu-repo/semantics/publishedVersionParaules clau / Matèries
Resum
We analyze a vertically differentiated market, assuming that conventional and green
firms’ products have different impacts on the environment. Heterogeneous consumers
choose to be supplied by a conventional or a ... [+]
We analyze a vertically differentiated market, assuming that conventional and green
firms’ products have different impacts on the environment. Heterogeneous consumers
choose to be supplied by a conventional or a green firm, depending on their
extra willingness to pay for a green product and the relative prices of the products
in the market. We show that environmental awareness campaigns may have a
negative impact on total welfare. This possibility is shown to exist without consumer
misperceptions about the quality of green products and ruling out changes
in the coverage and the structure of the market. Surprisingly, both conventional
and green firms may benefit from heterogeneity-enhancing awareness campaigns,
while social welfare is more likely to be enhanced by heterogeneity-reducing ones. [-]
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