ABSTRACT
Consumer preference to purchase from “green” firms is well established and often revealed through increased willingness to pay for products viewed as “clean,” i.e., produced with environmentally friendly production or abatement technologies such as recycling and use of less polluting inputs. From a polluting firm’s perspective, there may be strong incentives to invest in these technologies if public opinion becomes more favorable toward the firm, or if the firm can use its investment as a way of differentiating its product.
