Environmentalists Offer a Big Push for New Green Products: Evidence from Hybrid Vehicle Registrations

31 Pages Posted: 25 Oct 2006

See all articles by Matthew E. Kahn

Matthew E. Kahn

University of Southern California; National Bureau of Economic Research (NBER)

Date Written: October 2006

Abstract

Corporations are constantly introducing new products for sale. Some new products, such as hybrid vehicles, are greener than incumbent products. Due to composition effects, certain environmental externalities could be mitigated if there were guinea pigs willing to commit to purchase new green products. In the presence of fixed costs of production, firms will be more likely to produce such products if they anticipate that there is demand. This paper examines the role of environmentalists as "guinea pigs" who purchase unproven new products that are likely to offer social environmental benefits. I focus on the diffusion of registered Hybrid vehicles across Los Angeles census tracts between 2001 and 2005.

Keywords: environmentalism, innovation, hybrid vehicles

JEL Classification: Q2

Suggested Citation

Kahn, Matthew E., Environmentalists Offer a Big Push for New Green Products: Evidence from Hybrid Vehicle Registrations (October 2006). Available at SSRN: https://ssrn.com/abstract=940035 or http://dx.doi.org/10.2139/ssrn.940035

Matthew E. Kahn (Contact Author)

University of Southern California ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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