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Environmental degradation and the limits to LOV

Environmental degradation and the limits to LOV

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Original languageEnglish
PublisherUniversity of Dundee
Publication date2010
StatePublished

Publication series

NameDundee Discussion Papers in Economics
PublisherUniversity of Dundee
No.234
ISSN (Print)1473-236X

Abstract

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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