Environmental and Economic Consequences of a Market with Green and Brown Firms

Explore a 47-minute conference talk examining the environmental and economic impacts of markets with green and brown firms. Delve into a Cournot competition model where firms are categorized as either green or brown, with green firms motivated by consumer willingness to pay premium prices for environmentally friendly products. Analyze three distinct definitions of "green" firms: those adopting cleaner but costlier technology (Green Tech), those forming a cartel to control prices (Green Cartel), and those recognizing their collective impact on pollution (Green Club). Investigate the conditions leading to various market equilibrium compositions and compare the environmental and economic outcomes for each scenario. Gain insights into which type of "green" approach is most beneficial under different circumstances.