In this paper we analyse a setup where consumers are heterogeneous in the perception of environmental quality. The equilibrium is verified in a setting with horizontal and vertical (green) differentiation. Profits are increasing in the misperception of quality, while, the investment in green...

Policy makers and analysts are often faced with situations where it is unclear whether market-based instruments hold real promise of reducing costs, relative to conventional uniform standards. We develop analytic expressions that can be employed with modest amounts of information to estimate the...

We create a comprehensive policy evaluation system that is based on the concept of integrated basin management. From the point of view of economic development and environmental protection, we set up an equilibrium environmental tax, optimize its allocation and simulate its effects on reducing...