Impacts of government and market on firm’s efforts to reduce pollution
We examine how the government and the market affect firm’s pollution abatement efforts, i.e. firm’s efforts to reduce its pollution emission. The way for the government to control firm’s pollution is to impose penalty, whereas the consumers (the market) make their purchasing decision by taking into...
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2015-12-01
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Online Access: | http://dx.doi.org/10.1080/23322039.2015.1062634 |
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doaj-25d811dba4194736b69349fa674c643f2020-11-24T23:49:38ZengTaylor & Francis GroupCogent Economics & Finance2332-20392015-12-013110.1080/23322039.2015.10626341062634Impacts of government and market on firm’s efforts to reduce pollutionBowon Kim0Jeong Eun Sim1KAIST Business SchoolKAIST Business SchoolWe examine how the government and the market affect firm’s pollution abatement efforts, i.e. firm’s efforts to reduce its pollution emission. The way for the government to control firm’s pollution is to impose penalty, whereas the consumers (the market) make their purchasing decision by taking into account the pollution, i.e. the demand is affected by the stock of pollution. In effect, we consider two forces, government penalty and consumer’s sensitivity to pollution, as primary factors to control firm’s pollution and analyze their interaction in relation to the firm’s pollution reduction efforts. The analysis suggests as follows. The government penalty and the consumer’s awareness are substitutes either (1) when the market size is relatively large or (2) when the market is relatively small, but the government penalty is relatively heavy. On the contrary, the two factors are complements when the market size is relatively small and the government penalty is relatively light. We discuss managerial and economic implications of the analysis results.http://dx.doi.org/10.1080/23322039.2015.1062634pollution reductiongovernment penaltyconsumer awareness |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Bowon Kim Jeong Eun Sim |
spellingShingle |
Bowon Kim Jeong Eun Sim Impacts of government and market on firm’s efforts to reduce pollution Cogent Economics & Finance pollution reduction government penalty consumer awareness |
author_facet |
Bowon Kim Jeong Eun Sim |
author_sort |
Bowon Kim |
title |
Impacts of government and market on firm’s efforts to reduce pollution |
title_short |
Impacts of government and market on firm’s efforts to reduce pollution |
title_full |
Impacts of government and market on firm’s efforts to reduce pollution |
title_fullStr |
Impacts of government and market on firm’s efforts to reduce pollution |
title_full_unstemmed |
Impacts of government and market on firm’s efforts to reduce pollution |
title_sort |
impacts of government and market on firm’s efforts to reduce pollution |
publisher |
Taylor & Francis Group |
series |
Cogent Economics & Finance |
issn |
2332-2039 |
publishDate |
2015-12-01 |
description |
We examine how the government and the market affect firm’s pollution abatement efforts, i.e. firm’s efforts to reduce its pollution emission. The way for the government to control firm’s pollution is to impose penalty, whereas the consumers (the market) make their purchasing decision by taking into account the pollution, i.e. the demand is affected by the stock of pollution. In effect, we consider two forces, government penalty and consumer’s sensitivity to pollution, as primary factors to control firm’s pollution and analyze their interaction in relation to the firm’s pollution reduction efforts. The analysis suggests as follows. The government penalty and the consumer’s awareness are substitutes either (1) when the market size is relatively large or (2) when the market is relatively small, but the government penalty is relatively heavy. On the contrary, the two factors are complements when the market size is relatively small and the government penalty is relatively light. We discuss managerial and economic implications of the analysis results. |
topic |
pollution reduction government penalty consumer awareness |
url |
http://dx.doi.org/10.1080/23322039.2015.1062634 |
work_keys_str_mv |
AT bowonkim impactsofgovernmentandmarketonfirmseffortstoreducepollution AT jeongeunsim impactsofgovernmentandmarketonfirmseffortstoreducepollution |
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1725481484610961408 |