Environmental degradation and the limits to LOV
Research output: Working paper › Discussion paper
|Name||Dundee Discussion Papers in Economics|
|Publisher||University of Dundee|
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.