Abstract
In recent years, there has been a proliferation of interest concerning environmental issues and the application of the antitrust laws. Numerous commentators, for instance, have argued that the antitrust enforcement should adjust to reflect the environmental harm (or benefit) that is generated from a competitive condition. In this paper, we take a step back and argue that analysis of the intersection between antitrust and environmentalism should begin with more mundane questions of economics. More specifically, we argue that environmental regulations can inform antitrust analysis by considering (at least) three issues: (1) the impact of environmental regulation on the firms' production cost; (2) how consumers' preferences are affected by environmental regulation; and (3) those environmental considerations that do not readily manifest through either cost or demand structures. We also use the electric vehicle market as an example to illustrate how these different factors can impact antitrust calculus.
Disciplines
Antitrust and Trade Regulation | Environmental Law | Environmental Policy | Law and Economics
Date of this Version
10-16-2024
Working Paper Citation
Choi, Albert H. and Crane, Daniel A., "Environmentalism and Antitrust" (2024). Law & Economics Working Papers. 280.
https://repository.law.umich.edu/law_econ_current/280
Included in
Antitrust and Trade Regulation Commons, Environmental Law Commons, Environmental Policy Commons, Law and Economics Commons