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Abstract

We examine new mechanisms that introduce environmentally friendly eco-changes involving the elimination of noxious commodities and take into account the structure of demand without a detrimental effect to agents' position. In the era of the fourth industrial revolution, these mechanisms allow eliminating unnecessary services or goods that are being replaced by modern technologies. We define optimal mechanisms under the criterion of distance minimization, when a small number of detrimental commodities is excluded from production processes as well as when producers are change-averse. The results have the form of theorems with rigorous proofs.
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Authors and Affiliations

Agnieszka Lipieta
1
Anna Denkowska
1

  1. Cracow University of Economics, Poland

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