This paper studies how environmental regulations affect prices. We use monthly point-of-sale data in the Japanese refrigerator market and employ the hedonic approach. Our central issue of environmental regulations involve two different types: one is the energy-saving regulation by government at the leading runner approach, associated with an eco-label. The second is the non-chlorofluorocarbon regulation resulting from industry self-regulation. As a result of Box-Cox regressions, we find that these environmental regulations result in a rise in price.
ASJC Scopus subject areas