Abstract

http://ssrn.com/abstract=1744301
 
 

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Designing Product Lines with Higher Aggregate Environmental Quality


Vish Krishnan


University of California, San Diego (UCSD) - Rady School of Management

Paul Lacourbe


CEU Business School

January 20, 2011


Abstract:     
Firms that consider designing environmentally sustainable products face technical and market constraints that are not always easy to negotiate. Our goal in this paper is to identify approaches and policies that promote sustainable innovation, under which the design decisions of a firm both maximize its profit and improve the environmental quality of its product line. We model and analyze the problem, and identify three approaches that contribute to sustainable innovation by a firm faced with a heterogeneous market of customers. Our results show that firms are able to achieve the dual goals of profits and environmental quality when (a) the firm's investments in inter-temporal R&D are considered, (b) the environmental policies are more nuanced, and (c) products are designed to cater to the psycho-social needs of their customers.

Number of Pages in PDF File: 32

Keywords: Product Line Design, Intertemporal R&D, Environmental Sustainability

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Date posted: January 22, 2011  

Suggested Citation

Krishnan, Vish and Lacourbe, Paul, Designing Product Lines with Higher Aggregate Environmental Quality (January 20, 2011). Available at SSRN: http://ssrn.com/abstract=1744301 or http://dx.doi.org/10.2139/ssrn.1744301

Contact Information

Vish Krishnan (Contact Author)
University of California, San Diego (UCSD) - Rady School of Management ( email )
9500 Gilman Drive
Rady School of Management
La Jolla, CA 92093
United States
Paul Lacourbe
CEU Business School ( email )
30 Frankel Leo
Budapest
Hungary
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