This paper examines the welfare consequences of private provision of green goods in output markets with product differentiation. In our setting, consumers can be prone to engage in the consumption of green goods (e.g., from eco-labels or due to some forms of altruism), and firm entry is endogenous. Our analysis shows that firms underinvest in environmentally cleaner products in situations where the social damage from polluting emissions is sufficiently large. However, beyond those situations, we find that firms can underinvest or overinvest depending on effects mediated through firm entry because entry raises output and thus increases consumer participation in the market, but it also reduces private incentives to provide consumers with cleaner products.

本文考察了在产品差异化的产出市场中私人提供绿色产品的福利后果。在我们的环境中，消费者可能倾向于从事绿色商品的消费（例如，通过生态标签或由于某种形式的利他主义），而牢固的进入是内生的。我们的分析表明，在污染排放造成的社会损害足够大的情况下，企业对环境清洁产品的投资不足。然而，除了这些情况之外，我们发现企业可能会投资不足或过度投资，这取决于通过企业进入介导的影响，因为进入提高了产出，从而增加了消费者对市场的参与，但它也减少了为消费者提供更清洁产品的私人激励。