Dundee Discussion Papers in Economics 234: Environmental degradation and the limits to LOV

Yu-Fu Chen, Hassan Molana, Catia Montagna

    Research output: Working paperDiscussion paper

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    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.
    Original languageEnglish
    PublisherUniversity of Dundee
    Publication statusPublished - 2010

    Publication series

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

    Keywords

    • Environmental degradation
    • Love-of-variety
    • Environmental policy

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