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Environmental Policy under Some Asymmetric Social-Economical Factors

Published: 20 February 2013
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Abstract

We consider situations where some social-economical factors, such as environmental awareness and other factors promoting greener environment, not only affects market demand and output, but also affects firm’s green innovative tendencies. This paper shows that if these social-economical factors are strong enough to move the market demand toward environmental friendliness, firm’s strategies might shift toward greener technology or environmental friendlier practices. If these effects on demand for greener environment are large enough, stringent environmental policy would induce more firms to produce more.

Published in International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 1)
DOI 10.11648/j.ijefm.20130101.15
Page(s) 38-42
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

Stringent Environmental Policy, Environmental Awareness, Demand Effect, Induced Output Effect

References
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[3] S. Davenport, "Exploring the Role of Proximity in SME Knowledge-Acquisition," Research Policy, vol. 34, issue 5, 2005, pp.683-701.
[4] T. J. Dean, R. L. Brown, and V. Stango, "Environmental Regulation as a Barrier to the Formation of Small Manufac-turing Establishments: A Longitudinal Examination," J. of Environmental Economics and Management, vol. 40, issue 1, 2000, pp.56-75.
[5] V. Denicolo, "Pollution-Reducing Innovations under Taxes or Permits," Oxford Economic Papers, Oxford University Press, vol. 51, issue 1, 1999, pp.184-99.
[6] Y. H. Farzin, "The Effects of Emissions Standards on Industry," J. of Regulatory Economics,vol. 24, issue 3, 2003, pp.315-327.
[7] K. Hoffmana, M. Parejoa, J. Bessant, and L. Perrena, "Small Firms, R&D, Technology and Innovation in the UK: a Lite-rature Review," Technovation, vol. 18, issue 1, 1998, pp.39-55.
[8] D. Keeble, "Small Firms, Innovation and Regional Devel-opment in Britain in the 1990s,"Regional Studies, vol. 31, issue 3, 1997, pp.281-293.
[9] Jean-JacquesLaffontand JeanTirole, "Pollution permits and environmental innovation," Journal of Public Economics, Elsevier, vol. 62, issue 1-2, 1996, pp.127-140.
[10] L. A. Lefebvre and E. Lefebvre, " Competitive positioning and innovative efforts in SMEs," Small Business Economics, vol. 5, issue 4, 1993, pp.297-305.
[11] R. D.Mohr, "Technical Change, External Economies, and the Porter Hypothesis," J. of Environmental Economics and Management, vol. 43, 2002, pp.158-168.
[12] J. P. Montero, "Permits, Standards, and Technology Innova-tion," J. of Environmental Economics and Management, vol. 44, issue 1, 2002, pp.23-44.
[13] J. L. Moraga-Gonzalez and N. Padrón-Fumero, "Environ-mental Policy in a Green Market," Environmental and Resource Economics, vol. 22, issue 3, 2002, pp.419-447.
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Cite This Article
  • APA Style

    Chien-Chieh Huang, Huei-Chin Lin. (2013). Environmental Policy under Some Asymmetric Social-Economical Factors. International Journal of Economics, Finance and Management Sciences, 1(1), 38-42. https://doi.org/10.11648/j.ijefm.20130101.15

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    ACS Style

    Chien-Chieh Huang; Huei-Chin Lin. Environmental Policy under Some Asymmetric Social-Economical Factors. Int. J. Econ. Finance Manag. Sci. 2013, 1(1), 38-42. doi: 10.11648/j.ijefm.20130101.15

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    AMA Style

    Chien-Chieh Huang, Huei-Chin Lin. Environmental Policy under Some Asymmetric Social-Economical Factors. Int J Econ Finance Manag Sci. 2013;1(1):38-42. doi: 10.11648/j.ijefm.20130101.15

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  • @article{10.11648/j.ijefm.20130101.15,
      author = {Chien-Chieh Huang and Huei-Chin Lin},
      title = {Environmental Policy under Some Asymmetric Social-Economical Factors},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {1},
      number = {1},
      pages = {38-42},
      doi = {10.11648/j.ijefm.20130101.15},
      url = {https://doi.org/10.11648/j.ijefm.20130101.15},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130101.15},
      abstract = {We consider situations where some social-economical factors, such as environmental awareness and other factors promoting greener environment, not only affects market demand and output, but also affects firm’s green innovative tendencies. This paper shows that if these social-economical factors are strong enough to move the market demand toward environmental friendliness, firm’s strategies might shift toward greener technology or environmental friendlier practices. If these effects on demand for greener environment are large enough, stringent environmental policy would induce more firms to produce more.},
     year = {2013}
    }
    

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    AU  - Chien-Chieh Huang
    AU  - Huei-Chin Lin
    Y1  - 2013/02/20
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    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 38
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    PB  - Science Publishing Group
    SN  - 2326-9561
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    AB  - We consider situations where some social-economical factors, such as environmental awareness and other factors promoting greener environment, not only affects market demand and output, but also affects firm’s green innovative tendencies. This paper shows that if these social-economical factors are strong enough to move the market demand toward environmental friendliness, firm’s strategies might shift toward greener technology or environmental friendlier practices. If these effects on demand for greener environment are large enough, stringent environmental policy would induce more firms to produce more.
    VL  - 1
    IS  - 1
    ER  - 

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Author Information
  • Soochow University, Taipei, Taiwan

  • National Dong Hwa University, Hualien, Taiwan

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