Information Provision in Environmental Policy Design

Vera Danilina*, Alexander Grigoriev

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Information provision is a relatively recent but steadily growing environmental policy tool. Its emergency and topicality are due to the current escalation of ecological threats. Meanwhile, its high complexity and flexibility require a comprehensive approach to its design, which has to be tailored for specific characteristics of production process, market structure, and regulatory goals. This work proposes such an approach and builds a framework based on a three-level mathematical program extending well-known two-level Stackelberg game by introducing one more economic agent and one extra level of this sequential game. This study provides simple and very intuitive algorithms to compute optimal multi-tier information provision policies, both mandatory and voluntary. The paper urges for the wide implementation of such efficient environmental policy design tools.
Original languageEnglish
Pages (from-to)1-10
Number of pages10
JournalJournal of Environmental Informatics
Volume36
Issue number1
DOIs
Publication statusPublished - Sep 2020

JEL classifications

  • h23 - "Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies"

Keywords

  • Environmental policy
  • Information provision
  • Eco-certification
  • Eco-labelling
  • Multi-level mathematical programming
  • Stackelberg game
  • Exact algorithms

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