Environmental Degradation and the Limits to LOV

We show how consumers’ environmental concerns may limit ‘love of variety’ (LOV) and be reflected in consumers decisions. We investigate how the impact of environmental degradation on LOV influences demand and optimal product variety, and how a pollution tax on firms might be used to improve upon the market outcome and increase welfare.

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Year of publication:	2010-04
Authors:	Chen, Yu-Fu ; Molana, Hassan ; Montagna, Catia
Institutions:	Department of Economics Studies, University of Dundee
Subject:	Environmental degradation \| love-of-variety \| environmental policy

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Extent:	application/pdf
Series:	Dundee Discussion Papers in Economics. - ISSN 1473-236X.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 234 5 pages
Classification:	L1 - Market Structure, Firm Strategy, and Market Performance ; Q2 - Renewable Resources and Conservation; Environmental Management
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008559932