Modeling the Impact of Environmental Consciousness on the Supply-Demand Relationship between Firms and Customers

An increasing environmental consciousness of customers can become a strong incentive for firms to supply environmental-friendly products. If these products are not available, supply-demand deficits emerge. We use an agent-based model with an underlying network topology to study different scenarios for mitigating these deficits. Both customers and firms can adjust their tolerance level for environmental pollution, but cus- tomers can also establish new relations with other suppliers, following different rules. We show that the optimal mitigation of deficits results if customers form unconditional supply links that may become effective in the fu- ture, while firms steadily improve their environmental-friendly production.

You can play around with this notebook to test different scenarios.

This repositery contains the code to reproduce the results of this paper.