Borsenberger, Claire, Cremer, Helmuth, Joram, Denis, Lozachmeur, Jean-Marie and Malavolti-Grimal, Estelle (2023) E-commerce and parcel delivery: environmental policy with green consumers. In: Postal Strategies: Logistics, Access, and the Environment Parcu, Pier Luigi, Brennan, Timothy J. and Glass, Victor (eds.) Springer. Series “Topics in Regulatory Economics and Policy” Cham pp. 193-209. ISBN 978-3-031-25361-4

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Abstract

We study how consumers’ environmental awareness (CEA) affects the design of environmental policy in the e-commerce sector. We also examine if there is a need for regulation requiring delivery operators to reveal their emissions. We consider a model with two retailers who sell a differentiated product and two parcel delivery operators. Delivery generates CO2 emissions which create a global externality. We assume that less polluting technologies are more costly. We consider different scenarios reflecting the type of competition and the vertical structure of the industry. CEA mitigates the inefficiency of the equilibrium by bringing the level of emissions closer to its optimal level. This efficiency-enhancing effect of CEA also affects the design of emissions taxes, which leads to an amended Pigouvian rule. Under perfect competition, the tax is reduced by exactly the level of CEA expressed in monetary terms. Under imperfect competition, the adjustment exceeds this level.