Green Consumers, Emission Taxes, and Firm Relations
- This paper studies the interaction of environmental policy and green preferences under potential firm relocation. A green firm and a brown firm choose the environ- mental quality of their products.This paper studies the interaction of environmental policy and green preferences under potential firm relocation. A green firm and a brown firm choose the environ- mental quality of their products. Both an emission tax and consumers'willingness to pay for green products encourage investment in environmental quality. Firms may relocate to avoid taxation or abstain from investment in environmental quality to produce at lower cost. If the green firm does not relocate, both the green firm and the brown firm provide higher quality levels. Compared to first-best taxation, the equilibrium emission tax is lower (higher) if only the brown (green) firm relocates.…
| Author: | Laura Birg, Jan S. VoßwinkelORCiD |
|---|---|
| Parent Title (English): | Beiträge zur Jahrestagung des Vereins für Socialpolitik 2020: Gender Economics |
| Parent Title (German): | VfS Annual Conference 2020 (Virtual Conference): Gender Economics |
| Document Type: | Conference Proceeding |
| Language: | English |
| Year of Completion: | 2020 |
| Publishing Institution: | Hochschule Nürtingen-Geislingen |
| Release Date: | 2023/06/09 |
| Tag: | emission tax; environmental policy; green consumers; relocation |
| Page Number: | 16 |
| Institutes: | Fakultät Agrarwirtschaft, Volkswirtschaft und Management |
| open access: | ja |
| Licence (German): |  Urheberrechtlich geschützt |