Search Conferences

Type in any word, words or author name. This searchs through the abstract title, keywords and abstract text and authors. You may search all conferences or just select one conference.


 All Conferences
 EMAC 2019 Annual Conference
 EMAC 2020 Annual Conference
 EMAC 2020 Regional Conference

EMAC 2020 Annual Conference


Carbon Footprinting and Pricing Under Climate Concerns
(A2020-62615)

Published: May 27, 2020

AUTHORS

Marco Bertini, ESADE -- Ramon Llull University; Stefan Buehler, School of Economics and Political Science, University of St. Gallen; Daniel Halbheer, HEC Paris; Donald Lehmann, Columbia Business School

KEYWORDS

Product Design; Carbon Footprint; Net Zero Carbon Emissions

ABSTRACT

This paper studies how marketers should choose the carbon footprint and price of a product when consumers have climate concerns. We first derive the profit-maximizing carbon footprint and price, and examine the impact of stronger climate concerns on the optimal marketing activities. Next, we provide conditions under which offsetting the emissions in a voluntary market to achieve a net zero carbon footprint is optimal. Finally, we consider the impact of product-level decisions on the carbon emissions of the firm as a whole. Interestingly, we find that a firm can become a victim of its own success, as a greener product may boost sales to the point that overall emissions also increase.