Modeling the impact of environmental consciousness on the supply-demand relationship between firms and customers
- Tianyuan Wang , Giacomo Vaccario , Frank Schweitzer
- Signed relations , Economic networks , Network theory
- March 20, 2023
The study models the impact of environmental consciousness on the supply-demand relationship between firms and customers. Environmental consciousness can lead to supply-demand deficits, but customers forming unconditional supply links and firms improving their environmental-friendly production can mitigate these deficits. The results show that this approach can inform policies to reduce both supply-demand deficits and environmental pollution.
Our findings can inform policies to reduce both supply-demand deficits and environmental pollution by increasing environmental consciousness.
Why This Matters for Scientists
As a researcher, you may want to consider the implications of environmental consciousness on supply-demand relationships in your own work. The study highlights the importance of customers forming unconditional supply links and firms improving their environmental-friendly production to mitigate supply-demand deficits.
Quick Technical Overview
The study uses an agent-based model to investigate the impact of environmental consciousness on supply-demand relationships. The model is based on an underlying network topology and allows for customers and firms to adjust their tolerance levels for environmental pollution.
We show that the optimal mitigation of deficits results if customers form unconditional supply links that may become effective in the future, while firms steadily improve their environmental-friendly production.
Summary for Policy Makers
The study provides insights for policies aimed at reducing supply-demand deficits and environmental pollution. By increasing environmental consciousness, customers and firms can work together to mitigate supply-demand deficits and promote sustainable production practices. The study highlights the importance of unconditional supply links and environmental-friendly production in achieving these goals.
Our findings can inform policies to reduce both supply-demand deficits and environmental pollution by increasing environmental consciousness
Disclaimer
The above summaries were generated with the assistance of an AI system.
Abstract
An increasing environmental consciousness of customers can become a strong incentive for firms to supply environmental-friendly products. If these products are not available, supply-demand deficits emerge. We use an agent-based model with an underlying network topology to study different scenarios for mitigating these deficits. Both customers and firms can adjust their tolerance level for environmental pollution, but customers can also establish new relations with other suppliers, following different rules. We show that the optimal mitigation of deficits results if customers form unconditional supply links that may become effective in the future, while firms steadily improve their environmental-friendly production. Our findings can inform policies to reduce both supply-demand deficits and environmental pollution by increasing environmental consciousness.
