Vera Danilina*, Anwesha Banerjee**
Edward Levavasseur: edward.levavasseur[at]etu.univ-amu.fr
Lara Vivian: lara.vivian[at]univ-amu.fr
*Green public policy entered the global agenda in 1960s rapidly spreading across the world. It is related to a wide range of different instruments giving rise to the analysis of their efficiency and possible market effects. This research is focused on the welfare and environmental effects of two types of green policy, environmental taxation as a widely used traditional policy instrument, and green public procurement, or green purchasing, as a relatively recent approach to regulation. Within the heterogeneous firms framework we show the collateral effects of the green policies based on the resources redistribution across industries and average productivity changes. We also study the welfare and environmental effects conditionally on the type of the policy. Our research contributes to a relatively scarce literature on environment and trade with heterogeneous firms proposing a new approach to the green public policy modelling. The paper also provides a set of policy recommendations that can be of particular interest due to the recent development of green public procurement programmes.
**The provision of public goods can be often affected by social influences such as reciprocity. For instance, people contribute more when others contribute more. At the same time, the persistence of many social norms are by force of habit - that is, people continue to follow habits because ''everyone does it" and because changing habits is costly. This project will look at the effects of conformism and habit formation on social networks.