Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298055 
Year of Publication: 
2024
Series/Report no.: 
Working Paper No. 07.2024
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
Anti-consumerism is a doctrine that aims to discourage excessive consumption because of its damaging effect on the environment. It can either focus on creating psychic costs for consumers (a 'stick') or psychic benefits for non-consumers (a 'carrot'). This paper examines the impact of these two approaches on competition and welfare. The competitive effect is comparable in both cases - anti-consumerism (weakly) reduces competitive pressure as well as prices, outputs and profits. In terms of consumer and social welfare, however, the carrot performs strictly better than the stick.
Subjects: 
Anti-Consumerism
Stick and Carrot
Environmental Externalities
JEL: 
D11
L13
Q50
Q58
Document Type: 
Working Paper

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