Product Sustainability and Consumer Environmental Awareness in Differentiated Markets

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 anal...

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Detalhes bibliográficos
Autores: Hamoudi, Hamid, Avilés-Palacios, Carmen
Formato: artículo
Fecha de publicación:2023
País:España
Recursos:Universidad Rey Juan Carlos
Repositorio:BURJC-Digital. Repositorio Institucional de la Universidad Rey Juan Carlos
OAI Identifier:oai:burjcdigital.urjc.es:10115/30850
Acesso em linha:https://hdl.handle.net/10115/30850
Access Level:acceso abierto
Palavra-chave:Spatial competition
Environmental awareness
Sustainability
Regulation
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spelling Product Sustainability and Consumer Environmental Awareness in Differentiated MarketsHamoudi, HamidAvilés-Palacios, CarmenSpatial competitionEnvironmental awarenessSustainabilityRegulationSustainable 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.International Advances in Economic Research202420242023info:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/10115/30850reponame:BURJC-Digital. Repositorio Institucional de la Universidad Rey Juan Carlosinstname:Universidad Rey Juan CarlosInglésAttribution 4.0 Internacionalhttp://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessoai:burjcdigital.urjc.es:10115/308502026-06-24T12:48:17Z
dc.title.none.fl_str_mv Product Sustainability and Consumer Environmental Awareness in Differentiated Markets
title Product Sustainability and Consumer Environmental Awareness in Differentiated Markets
spellingShingle Product Sustainability and Consumer Environmental Awareness in Differentiated Markets
Hamoudi, Hamid
Spatial competition
Environmental awareness
Sustainability
Regulation
title_short Product Sustainability and Consumer Environmental Awareness in Differentiated Markets
title_full Product Sustainability and Consumer Environmental Awareness in Differentiated Markets
title_fullStr Product Sustainability and Consumer Environmental Awareness in Differentiated Markets
title_full_unstemmed Product Sustainability and Consumer Environmental Awareness in Differentiated Markets
title_sort Product Sustainability and Consumer Environmental Awareness in Differentiated Markets
dc.creator.none.fl_str_mv Hamoudi, Hamid
Avilés-Palacios, Carmen
author Hamoudi, Hamid
author_facet Hamoudi, Hamid
Avilés-Palacios, Carmen
author_role author
author2 Avilés-Palacios, Carmen
author2_role author
dc.subject.none.fl_str_mv Spatial competition
Environmental awareness
Sustainability
Regulation
topic Spatial competition
Environmental awareness
Sustainability
Regulation
description 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.
publishDate 2023
dc.date.none.fl_str_mv 2023
2024
2024
dc.type.none.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/10115/30850
url https://hdl.handle.net/10115/30850
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.rights.none.fl_str_mv Attribution 4.0 Internacional
http://creativecommons.org/licenses/by/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Attribution 4.0 Internacional
http://creativecommons.org/licenses/by/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv International Advances in Economic Research
publisher.none.fl_str_mv International Advances in Economic Research
dc.source.none.fl_str_mv reponame:BURJC-Digital. Repositorio Institucional de la Universidad Rey Juan Carlos
instname:Universidad Rey Juan Carlos
instname_str Universidad Rey Juan Carlos
reponame_str BURJC-Digital. Repositorio Institucional de la Universidad Rey Juan Carlos
collection BURJC-Digital. Repositorio Institucional de la Universidad Rey Juan Carlos
repository.name.fl_str_mv
repository.mail.fl_str_mv
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