Green Veblen effect: Sustainability in pollution management

Chenavaz, Régis; Dimitrov, Stanko; Rustico, Erica

doi:10.1016/j.jclepro.2023.136624

Cited by 3 publications

(1 citation statement)

References 90 publications

(112 reference statements)

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“…This increase may diminish the cost competitiveness of enterprises offering similar products and potentially amplify the financial implications of carbon emissions trading policies [ 30 ]. Therefore, it is evident that there exists a distinction in the influence of "low-end improvement" and "high-end improvement" of product quality on the pricing power of high-carbon enterprises, indicating that the pricing power of products can experience significant enhancement only when product quality reaches a high standard [ 26 , 31 ]. Consequently, the moderating impact of product quality may exhibit non-linear characteristics.…”

Section: Literature Review and Theoretical Hypothesesmentioning

confidence: 99%

Can carbon emissions trading policy promote product bargaining power increases for high-carbon enterprises? Evidence from China

Wang,

2024

PLoS ONE

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Carbon emissions trading policies play a crucial role in facilitating the transition to high-end products within high-carbon enterprises. Nevertheless, current empirical analyses of the carbon emissions trading market exhibit a lack of precision and are susceptible to bias in their findings. Limited research has been conducted on the influence of product quality as a potential constraint on the impact of carbon trading on product bargaining power. This study presents a double-difference model utilizing data on emission-control enterprises in China’s carbon market to examine the influence of the carbon emissions trading mechanism on the bargaining power of high-carbon products. Empirical analysis is conducted using financial data from listed companies in China spanning the years 2010 to 2020. The findings indicate that the implementation of carbon emissions trading policies has a dampening impact on the product bargaining power of high-carbon enterprises. Moreover, carbon emissions trading policies have heterogeneous effects on the product bargaining power of high-carbon firms with different life cycles, with mature high-carbon firms receiving a boost and declining high-carbon firms receiving a dampening effect. Mechanism test finds that the incomplete transmission effect of cost shocks resulting from carbon emissions trading policies has negatively affect the product bargaining power of high-carbon enterprises. Further research finds that product quality is a key factor in determining the effect of the carbon emissions trading policy, and that the impact of the carbon emissions trading policy on the bargaining power of products of high-carbon firms takes on a "U" shape due to product quality. Once the product quality exceeds the bottleneck value of 0.5956, the policy significantly increases the bargaining power of products. The study confirms that the establishment of carbon markets can effectively increase the bargaining power of superior products. These results offer a comprehensive theoretical and practical foundation for nations to advance the development of carbon markets and facilitate the achievement of sustainable development by high-carbon enterprises.

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Section: Literature Review and Theoretical Hypothesesmentioning

confidence: 99%