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
Authors:	Chen, Yu-Fu ; Molana, Hassan ; Montagna, Catia
Institutions:	Scottish Institute for Research in Economics (SIRE)
Subject:	Environmental degradation \| love-of-variety \| environmental policy

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Series:	SIRE Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series SIRE-DP-2010-30 Number 2010-30
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010553678