{"title":"Product Sustainability and Consumer Environmental Awareness in Differentiated Markets","authors":"Hamid Hamoudi, Carmen Avilés-Palacios","doi":"10.1007/s11294-023-09881-y","DOIUrl":null,"url":null,"abstract":"<p>Sustainable management of natural stock resources can be promoted through state intervention. This study investigates optimal regulatory strategies to mitigate the negative environmental effects of human activities within a duopolistic, differentiated linear market à la Hotelling framework. The analysis is conducted from both a business and a social perspective, aiming to elucidate the role of regulatory interventions, awareness campaigns, and sustainable production characteristics in shaping firm behavior and market outcomes. Under the business perspective, a game-theoretical approach is employed, involving the regulator and two competing firms. The equilibrium in prices and production characteristics is derived, revealing how firms respond to sustainable characteristics and awareness campaigns. In the social perspective, where the regulator has complete control, optimal strategies are determined to maximize social welfare, resulting in reduced differentiation and enhanced sustainability. This study identifies the optimal level of awareness campaign and sustainable characteristic proposed by the regulator. The findings highlight the significance of coordinated regulatory policies and awareness campaigns to induce firms toward more sustainable practices, ultimately contributing to a more ecologically balanced market. The study offers insights for policymakers and practitioners seeking effective strategies to address environmental concerns in differentiated markets, thereby promoting sustainable economic growth and reducing ecological impacts.</p>","PeriodicalId":45656,"journal":{"name":"International Advances in Economic Research","volume":"1 1","pages":""},"PeriodicalIF":1.1000,"publicationDate":"2023-12-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Advances in Economic Research","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1007/s11294-023-09881-y","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Sustainable management of natural stock resources can be promoted through state intervention. This study investigates optimal regulatory strategies to mitigate the negative environmental effects of human activities within a duopolistic, differentiated linear market à la Hotelling framework. The analysis is conducted from both a business and a social perspective, aiming to elucidate the role of regulatory interventions, awareness campaigns, and sustainable production characteristics in shaping firm behavior and market outcomes. Under the business perspective, a game-theoretical approach is employed, involving the regulator and two competing firms. The equilibrium in prices and production characteristics is derived, revealing how firms respond to sustainable characteristics and awareness campaigns. In the social perspective, where the regulator has complete control, optimal strategies are determined to maximize social welfare, resulting in reduced differentiation and enhanced sustainability. This study identifies the optimal level of awareness campaign and sustainable characteristic proposed by the regulator. The findings highlight the significance of coordinated regulatory policies and awareness campaigns to induce firms toward more sustainable practices, ultimately contributing to a more ecologically balanced market. The study offers insights for policymakers and practitioners seeking effective strategies to address environmental concerns in differentiated markets, thereby promoting sustainable economic growth and reducing ecological impacts.
期刊介绍：
International Advances in Economic Research (IAER) was established to promote the dissemination of economic and financial research within the international community. Founded in 1995 by the International Atlantic Economic Society, a need was identified to provide the latest research on today''s economic policies and tomorrow''s economic and financial conditions. Economists can no longer be concerned with professional developments only in their home country. Research by scholars in one country can easily have implications for other countries, yet often vital results are not shared. Economic restructuring in a shrinking world demands close analysis and careful interpretation. In IAER, authors from around the globe look at these issues, coming together in the cross-fertilization of multinational ideas. The journal provides economists, financial specialists, and scholars in related disciplines with much-needed opportunities to share their insights with worldwide colleagues. Policy-oriented, empirical, and theoretical research papers in all economic and financial areas are welcome, without regard to methodological preferences or school of thought. All manuscripts are submitted to a double-blind, peer review process.
In addition to formal publication of full-length articles, IAER provides an opportunity for less formal communication through its Research Notes section. A small point may not be worthy of a full-length, formal paper but is important enough to warrant dissemination to other researchers. Research in progress may be of interest to other scholars in the field. A research approach ending in negative results needs to be shared to save others similar pitfalls. Research Notes has been established to facilitate this form of communication. The section provides a means by which short manuscripts of less than 200 words can quickly appear in IAER. The review process for these shorter manu scripts is usually completed within 30 days.
Officially cited as: Int Adv Econ Res
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