Greening on the Edge: A Critical Reappraisal of Reza-Gharehbagh and Pullman
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Abstract
Reza-Gharehbagh and Pullman (2026) study sustainable product development under crowdfunding and regulation. They disregard corner solutions for environmental quality (“greening on the edge”), which robustly arise across admissible parameter configurations, and conduct comparative statics where no interior solution exists. A complete characterization of the equilibrium corrects, and in some cases contradicts, their conclusions, highlighting the need for analytical rigor in models intended to inform regulatory policy.