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Timing of environmental technological choice and trade unions' climate solidarity

Tian, Mo; Asproudis, Elias; Filippiadis, Eleftherios

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Assistant Professor

Elias Asproudis

Eleftherios Filippiadis


We consider a Cournot duopoly consisting of two geographically separated firms, each associated with a local environmental-friendly trade union that exhibits climate solidarity. In the basic model, firms choose abatement technologies prior to bargaining over wages and employment with the unions. We show that wage demanded is decreasing as the union's degree of climate solidarity increases, providing additional incentives for firms to adopt greener technology, hence improving the social welfare. In the alternative model, where trade unions decide the wages prior to the firms' abatement and employment decisions, the firms choose the dirtiest available technology implying that the union's climate solidarity has no effect on the firm's abatement decisions. These results suggest that establishing climate solidarity as a norm across trade unions can, depending on the timing of the environmental technological choice, become a powerful instrument in battling climate change, critically supplementing the as yet ineffective international policy framework.

Journal Article Type Article
Acceptance Date Jun 4, 2022
Online Publication Date Jun 16, 2022
Publication Date Sep 1, 2022
Deposit Date Jun 28, 2022
Publicly Available Date Dec 17, 2023
Journal Technological Forecasting and Social Change
Print ISSN 0040-1625
Peer Reviewed Peer Reviewed
Volume 182
Article Number 121801
Keywords green trade unions; reciprocity; climate solidarity; emissions; environmental technology
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